4Q2020 | ||
Supplemental Information | ||
FURNISHED AS OF FEBRUARY 10, 2021 - UNAUDITED | ||
FORWARD LOOKING STATEMENTS & RISK FACTORS | ||
This Supplemental Information report contains disclosures that are “forward-looking statements” as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include all statements that do not relate solely to historical or current facts and can be identified by the use of words and phrases such as “can,” “may,” “payable,” “indicative,” "predictive," “annualized,” “expect,” “expected,” “range of expectations,” "would have been," "budget," and other comparable terms in this report. These forward-looking statements are made as of the date of this report and are not guarantees of future performance. These statements are based on the current plans and expectations of Company management and are subject to a number of unknown risks, uncertainties, assumptions and other factors that could cause actual results to differ materially from those described in this release or implied by such forward-looking statements. Such risks and uncertainties include, among other things, the following: the impact of the COVID-19 pandemic on occupancy rates and on the operations of the Company and its tenants; actions governments take in response to the COVID-19 pandemic, including the introduction of public health measures and other regulations affecting the Company’s properties and the operations of the Company and its tenants; general economic uncertainty in key markets as a result of the COVID-19 pandemic and a worsening of global economic conditions or low levels of economic growth changes in the economy; increases in interest rates; the availability and cost of capital at expected rates; competition for quality assets; negative developments in the operating results or financial condition of the Company's tenants, including, but not limited to, their ability to pay rent; the Company's ability to reposition or sell facilities with profitable results; the Company's ability to re-lease space at similar rates as vacancies occur; the Company's ability to renew expiring leases; government regulations affecting tenants' Medicare and Medicaid reimbursement rates and operational requirements; unanticipated difficulties and/or expenditures relating to future acquisitions and developments; changes in rules or practices governing the Company's financial reporting; the Company may be required under purchase options to sell properties and may not be able to reinvest the proceeds from such sales at rates of return equal to the return received on the properties sold; uninsured or underinsured losses related to casualty or liability; the incurrence of impairment charges on its real estate properties or other assets; and other legal and operational matters. Other risks, uncertainties and factors that could cause actual results to differ materially from those projected are detailed under the heading “Risk Factors,” in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) for the year ended December 31, 2020, under the heading "Risk Factors" and other risks described from time to time thereafter in the Company's SEC filings. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Table of Contents | ||
4 | Highlights | ||||
6 | Salient Facts | ||||
7 | Corporate Information | ||||
8 | Balance Sheet | ||||
9 | Statements of Income | ||||
10 | FFO, Normalized FFO, & FAD | ||||
11 | Capital Funding & Commitments | ||||
12 | Debt Metrics | ||||
13 | Debt Covenants | ||||
14 | Acquisition & Disposition Activity | ||||
15 | Re/development Activity | ||||
16 | Portfolio | ||||
17 | Associated Health Systems | ||||
18 | Top Tenants | ||||
19 | MOB Proximity to Hospital | ||||
20 | Lease Maturity, Lease & Building Size | ||||
21 | Historical Occupancy | ||||
22 | Occupancy Reconciliation | ||||
23 | Same Store Leasing Statistics | ||||
24 | Same Store Performance | ||||
25 | NOI Reconciliations | ||||
27 | EBITDA Reconciliations | ||||
28 | Components of Net Asset Value | ||||
29 | Components of Expected FFO |
Copies of this report may be obtained at www.healthcarerealty.com or by contacting Investor Relations at 615.269.8175 or communications@healthcarerealty.com.
HEALTHCARE REALTY | 4Q 2020 SUPPLEMENTAL INFORMATION 3 |
Highlights | ||
QUARTERLY HIGHLIGHTS | ||
•Normalized FFO per share totaled $0.42, an increase of 1.5% from $0.41 in the fourth quarter of 2019.
•Same store cash NOI increased 2.0% both over the fourth quarter of 2019 and for the trailing twelve months ended December 31, 2020.
•Predictive growth measures in the same store multi-tenant portfolio include:
◦Average in-place rent increases of 2.91%
◦Future annual contractual increases of 3.10% for leases commencing in the quarter
◦Weighted average cash leasing spreads of 2.8% on 351,000 square feet renewed:
▪11% (<0% spread)
▪13% (0-3%)
▪55% (3-4%)
▪21% (>4%)
◦Tenant retention of 84.2%
•Portfolio leasing activity in the fourth quarter totaled 542,000 square feet related to 139 leases:
◦422,000 square feet of renewals
◦120,000 square feet of new and expansion leases
•In November, the Company announced a joint venture agreement with Teachers Insurance and Annuity Association ("TIAA") to invest in a broad range of medical office buildings. Healthcare Realty owns a 50% interest in the joint venture, is the managing member of the partnership, and manages day-to-day operations and leasing of the properties.
•During the fourth quarter, the Company acquired sixteen medical office buildings for $336.7 million totaling 959,000 square feet including four properties in the TIAA joint venture totaling $125.9 million:
◦In Los Angeles, two buildings for $93.8 million:
▪A 136,000 square foot building on AA- rated MemorialCare Health System's Saddleback Medical Center campus where the Company purchased a property in January 2020.
▪A 49,000 square foot building located less than two miles from the Saddleback campus.
▪These buildings were purchased under the TIAA joint venture.
◦In Greensboro, five buildings for $67.2 million:
▪Four buildings totaling 177,000 square feet adjacent to AA- rated Cone Health's Moses Cone Memorial Hospital campus.
▪One building totaling 35,000 square feet on Cone Health's Alamance Regional Medical Center.
▪In August, Cone Health announced plans to merge with AA rated Sentara Healthcare.
◦In Atlanta, two buildings for $50.1 million totaling 125,000 square feet adjacent to A rated Northeast Georgia Health System's Gainesville campus.
◦In San Diego, one building for $37.4 million totaling 45,000 square feet that is leased to a diverse group of healthcare providers.
◦In Memphis, two buildings for $33.3 million:
▪A 135,000 square foot building leased to a variety of medical tenants including UT Medical Group, Methodist Healthcare and Baptist Memorial Health Care.
▪A 40,000 square foot building located on BBB+ rated Baptist Memorial's DeSoto Hospital campus, the Company's second investment on this hospital campus.
◦In Minneapolis, two buildings for $32.1 million:
▪A 92,000 square foot building located on AA- rated Allina Health's Mercy Hospital campus.
▪A 49,000 square foot building 100% leased to multiple tenants including Minnesota Gastroenterology and Summit Orthopedics.
▪These buildings were purchased under the TIAA joint venture.
◦In Nashville, one building for $14.0 million:
▪A 39,000 square foot building adjacent to AA+ rated Ascension Health's Saint Thomas Midtown Hospital.
▪The Company now owns over 400,000 square feet on this growing campus with an opportunity to develop additional square footage on this site.
HEALTHCARE REALTY | 4Q 2020 SUPPLEMENTAL INFORMATION 4 |
◦In Colorado Springs, one building for $8.9 million:
▪A 37,000 square foot building near BBB+ rated CommonSpirit Health's St. Francis Medical Center, where the Company owns an 80,000 square foot medical office building.
▪The property is located immediately adjacent to a medical office building acquired by the Company in March 2020.
•Subsequent to the end of the quarter, the Company acquired three medical office buildings for $39.7 million totaling 144,000 square feet:
◦In Dallas, two buildings for $22.5 million:
▪122,000 total square feet located on AA- rated Baylor Scott & White's Medical Center - Grapevine campus.
▪The Company owns two other properties on this campus.
◦In San Diego, one building for $17.2 million totaling 22,000 square feet 100% leased to University of California San Diego Health and adjacent to AA rated Scripps Health's Mercy Hospital San Diego.
•Since the end of the third quarter, the Company entered into forward equity contracts totaling 3.0 million shares at a weighted average price per share of $31.08.
◦Since the end of the third quarter, the Company settled 3.6 million shares through its forward equity program generating $108.7 million in net proceeds.
◦The Company currently has approximately 1.8 million shares to be settled through forward equity contracts. The Company expects gross proceeds of approximately $56.6 million, before costs of borrowing under the forward contracts.
•On October 2, the Company issued $300 million of senior notes due March 2031 with a coupon rate of 2.05%. The Company also called its $250 million, 3.75% senior notes due 2023, which were redeemed on October 19, 2020.
•As of December 31, the Company had cash of $15.3 million and $700 million available on its revolver.
•Net debt to adjusted EBITDA was 5.2 times at the end of the quarter.
•A dividend of $0.30 per share was paid on December 1, 2020 and a dividend of $0.3025 is payable on March 9, 2021 for stockholders of record on February 22, 2021.
ANNUAL HIGHLIGHTS | ||
•Normalized FFO totaled $222.2 million or $1.65 per diluted common share, an increase of 2.9% from $1.60 per diluted common share in 2019.
•Predictive growth measures in the same store multi-tenant portfolio include:
◦Average in-place rent increases of 2.91%
◦Future annual contractual increases of 3.08% for leases commencing in the year
◦Weighted average cash leasing spreads of 4.1% on 1,487,000 square feet renewed:
▪14% (<0% spread)
▪12% (0-3%)
▪46% (3-4%)
▪28% (>4%)
◦Average tenant retention of 84.5%
•Annual portfolio leasing activity totaled 2,389,000 square feet related to 607 leases:
◦1,827,000 square feet of renewals
◦562,000 square feet of new and expansion leases
•Net investment activity totaled $323.9 million:
◦$546.9 million of acquisitions
◦$26.5 million of development and redevelopment funding
◦$249.4 million of dispositions
•Dividends paid in 2020 totaled $162.6 million, which equaled 73.2% of normalized FFO and 91.0% of FAD.
OTHER ITEMS OF NOTE | ||
•The Company expects general and administrative expense to increase in the first quarter of 2021 over the fourth quarter of 2020 by approximately $0.8 million due to customary increases in payroll taxes, non-cash ESPP expense and healthcare savings account fundings. Approximately $0.6 million is not expected to recur in subsequent quarters.
•Below are select COVID-19 related matters that occurred in the fourth quarter:
◦Collected over 99% of fourth quarter and full year 2020 rent due
◦No new COVID deferrals granted in the fourth quarter
◦$7.1 million repaid out of $7.2 million of cumulative COVID related deferrals granted in the second and third quarters
HEALTHCARE REALTY | 4Q 2020 SUPPLEMENTAL INFORMATION 5 |
Salient Facts 1 | ||
AS OF DECEMBER 31, 2020 | ||
Properties | |||||||||||
$4.6B invested in 227 properties | |||||||||||
16.4M SF owned in 24 states | |||||||||||
12.6M SF managed by Healthcare Realty | |||||||||||
95.3% medical office and outpatient | |||||||||||
Capitalization | |||||||||||
$5.9B enterprise value as of 2/5/21 | |||||||||||
$4.3B market capitalization as of 2/5/21 | |||||||||||
139.7M shares outstanding as of 2/5/21 | |||||||||||
$0.3025 quarterly dividend per share | |||||||||||
BBB/Baa2/BBB+ S&P/Moody's/Fitch | |||||||||||
28.0% net debt to enterprise value at 12/31/20 | |||||||||||
5.2x net debt to adjusted EBITDA | |||||||||||
1Property counts and square footage include properties in the Company's unconsolidated JV.
HEALTHCARE REALTY | 4Q 2020 SUPPLEMENTAL INFORMATION 6 |
Corporate Information | ||
Healthcare Realty Trust is a real estate investment trust that integrates owning, managing, financing and developing income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States. As of December 31, 2020, the Company was invested in 227 real estate properties in 24 states totaling 16.4 million square feet and was valued at approximately $5.7 billion. The Company provided leasing and property management services to 12.6 million square feet nationwide.
EXECUTIVE OFFICERS | ||
Todd J. Meredith
President and Chief Executive Officer
John M. Bryant, Jr.
Executive Vice President and General Counsel
J. Christopher Douglas
Executive Vice President and Chief Financial Officer
Robert E. Hull
Executive Vice President - Investments
CORPORATE HEADQUARTERS | ||
Healthcare Realty Trust Incorporated
3310 West End Avenue, Suite 700
Nashville, Tennessee 37203
Phone 615.269.8175 Fax 615.269.8461
communications@healthcarerealty.com
www.healthcarerealty.com
ANALYST COVERAGE | ||
BMO Capital Markets
Berenberg Capital Markets LLC
BTIG, LLC
CapitalOne Securities, Inc.
Citi Research
Green Street Advisors, Inc.
J.P. Morgan Securities LLC
Jefferies LLC
KeyBanc Capital Markets Inc.
Mizuho Securities USA Inc
Morgan Stanley & Co, LLC
Raymond James & Associates
Scotiabank
SMBC Nikko Securities America, Inc.
Stifel, Nicolaus & Company, Inc.
Wells Fargo Securities, LLC
BOARD OF DIRECTORS | ||
J. Knox Singleton
Chairman, Healthcare Realty Trust Incorporated
Retired Chief Executive Officer, Inova Health System
Todd J. Meredith
President and Chief Executive Officer
Healthcare Realty Trust Incorporated
John V. Abbott
Retired Chief Executive Officer
Aviation Asset Management Group, General Electric Company
Nancy H. Agee
President and Chief Executive Officer
Carilion Clinic
Edward H. Braman
Retired Audit Partner
Ernst & Young LLP
James J. Kilroy
President and Portfolio Manager
Willis Investment Counsel
Peter F. Lyle
Executive Vice President
Medical Management Associates, Inc.
Bruce D. Sullivan
Retired Audit Partner
Ernst & Young LLP
Christann M. Vasquez
Executive Vice President and Chief Operating Officer
Ascension Texas
David R. Emery (1944-2019)
Chairman Emeritus
Healthcare Realty Trust Incorporated
HEALTHCARE REALTY | 4Q 2020 SUPPLEMENTAL INFORMATION 7 |
Balance Sheet | ||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | ||
ASSETS | |||||||||||||||||||||||
4Q 2020 | 3Q 2020 | 2Q 2020 | 1Q 2020 | 4Q 2019 | |||||||||||||||||||
Real estate properties | |||||||||||||||||||||||
Land | $362,695 | $330,840 | $312,139 | $319,882 | $289,751 | ||||||||||||||||||
Buildings, improvements and lease intangibles | 4,220,297 | 4,014,740 | 3,937,657 | 4,126,046 | 3,986,326 | ||||||||||||||||||
Personal property | 11,195 | 10,962 | 10,849 | 10,783 | 10,538 | ||||||||||||||||||
Construction in progress | — | — | — | — | 48,731 | ||||||||||||||||||
Land held for development | 27,226 | 24,647 | 24,647 | 24,647 | 24,647 | ||||||||||||||||||
Total real estate properties | 4,621,413 | 4,381,189 | 4,285,292 | 4,481,358 | 4,359,993 | ||||||||||||||||||
Less accumulated depreciation and amortization | (1,239,224) | (1,198,444) | (1,169,298) | (1,164,462) | (1,121,102) | ||||||||||||||||||
Total real estate properties, net | 3,382,189 | 3,182,745 | 3,115,994 | 3,316,896 | 3,238,891 | ||||||||||||||||||
Cash and cash equivalents | 15,303 | 121,992 | 43,680 | 103,370 | 657 | ||||||||||||||||||
Restricted cash 1 | — | 60,644 | — | — | — | ||||||||||||||||||
Assets held for sale, net | 20,646 | 20,051 | — | 20 | 37 | ||||||||||||||||||
Operating lease right-of-use assets | 125,198 | 123,807 | 124,398 | 125,040 | 126,177 | ||||||||||||||||||
Financing lease right-of-use assets | 19,667 | 19,776 | 19,884 | 12,615 | 12,667 | ||||||||||||||||||
Net investment in sales-type leases 2 | — | — | 244,381 | — | — | ||||||||||||||||||
Investments in unconsolidated joint ventures 3 | 73,137 | 7,743 | 7,819 | 8,000 | 8,130 | ||||||||||||||||||
Other assets | 176,120 | 174,693 | 175,797 | 181,708 | 177,296 | ||||||||||||||||||
Total assets | $3,812,260 | $3,711,451 | $3,731,953 | $3,747,649 | $3,563,855 | ||||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||||||||
4Q 2020 | 3Q 2020 | 2Q 2020 | 1Q 2020 | 4Q 2019 | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Notes and bonds payable | $1,602,769 | $1,554,395 | $1,554,936 | $1,644,454 | $1,414,069 | ||||||||||||||||||
Accounts payable and accrued liabilities | 81,174 | 79,528 | 65,485 | 64,574 | 78,517 | ||||||||||||||||||
Liabilities of properties held for sale | 1,216 | 548 | — | 74 | 145 | ||||||||||||||||||
Operating lease liabilities | 92,273 | 91,466 | 91,259 | 91,093 | 91,574 | ||||||||||||||||||
Financing lease liabilities | 18,837 | 18,697 | 18,595 | 17,953 | 18,037 | ||||||||||||||||||
Other liabilities | 67,615 | 66,442 | 72,317 | 70,073 | 61,504 | ||||||||||||||||||
Total liabilities | 1,863,884 | 1,811,076 | 1,802,592 | 1,888,221 | 1,663,846 | ||||||||||||||||||
Commitments and contingencies | |||||||||||||||||||||||
Stockholders' equity | |||||||||||||||||||||||
Preferred stock, $.01 par value; 50,000 shares authorized | — | — | — | — | — | ||||||||||||||||||
Common stock, $.01 par value; 300,000 shares authorized | 1,395 | 1,361 | 1,360 | 1,349 | 1,347 | ||||||||||||||||||
Additional paid-in capital | 3,635,341 | 3,532,130 | 3,529,559 | 3,494,123 | 3,485,003 | ||||||||||||||||||
Accumulated other comprehensive loss | (17,832) | (19,267) | (20,294) | (19,777) | (6,175) | ||||||||||||||||||
Cumulative net income attributable to common stockholders | 1,199,499 | 1,215,362 | 1,207,132 | 1,131,619 | 1,127,304 | ||||||||||||||||||
Cumulative dividends | (2,870,027) | (2,829,211) | (2,788,396) | (2,747,886) | (2,707,470) | ||||||||||||||||||
Total stockholders' equity | 1,948,376 | 1,900,375 | 1,929,361 | 1,859,428 | 1,900,009 | ||||||||||||||||||
Total liabilities and stockholders' equity | $3,812,260 | $3,711,451 | $3,731,953 | $3,747,649 | $3,563,855 |
1Restricted cash in 3Q 2020 included cash held in escrow from the sale of a property in Oklahoma. These proceeds were disbursed as the Company acquired real estate investments in like-kind exchanges under Section 1031 of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”).
2In the second quarter of 2020, the Company entered into agreements to sell two single-tenant net leased properties ("Mercy disposition"), resulting in a lease modification and classification change from operating to sales-type. The properties were sold on July 30, 2020.
3Prior periods include a reclassification from Other assets to Investments in unconsolidated joint ventures for a joint venture in two parking garages.
HEALTHCARE REALTY | 4Q 2020 SUPPLEMENTAL INFORMATION 8 |
Statements of Income | ||
DOLLARS IN THOUSANDS | ||
4Q 2020 | 3Q 2020 | 2Q 2020 | 1Q 2020 | 4Q 2019 | 3Q 2019 | 2Q 2019 | 1Q 2019 | ||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||
Rental income | $123,877 | $123,384 | $122,358 | $122,644 | $119,438 | $117,740 | $114,351 | $110,696 | |||||||||||||||||||||||||||
Other operating | 2,003 | 1,868 | 1,332 | 2,163 | 2,086 | 2,059 | 1,966 | 1,961 | |||||||||||||||||||||||||||
125,880 | 125,252 | 123,690 | 124,807 | 121,524 | 119,799 | 116,317 | 112,657 | ||||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||||
Property operating | 50,210 | 50,171 | 46,580 | 49,552 | 46,214 | 46,777 | 44,286 | 42,725 | |||||||||||||||||||||||||||
General and administrative | 7,206 | 7,299 | 7,434 | 8,766 | 7,669 | 10,802 | 7,845 | 8,510 | |||||||||||||||||||||||||||
Acquisition and pursuit costs 1 | 939 | 440 | 431 | 750 | 515 | 501 | 422 | 305 | |||||||||||||||||||||||||||
Depreciation and amortization | 48,104 | 47,143 | 47,691 | 47,497 | 46,134 | 45,137 | 43,926 | 42,662 | |||||||||||||||||||||||||||
106,459 | 105,053 | 102,136 | 106,565 | 100,532 | 103,217 | 96,479 | 94,202 | ||||||||||||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||||||||||||||
Gain (loss) on sales of real estate properties | (34) | 2,177 | 68,267 | (49) | 20,036 | 200 | 4,849 | 15 | |||||||||||||||||||||||||||
Interest expense | (13,618) | (14,154) | (14,442) | (13,960) | (13,816) | (14,181) | (13,850) | (13,588) | |||||||||||||||||||||||||||
Loss on extinguishment of debt | (21,503) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Impairment of real estate assets | — | — | — | — | (7) | — | (5,610) | — | |||||||||||||||||||||||||||
Equity income (loss) from unconsolidated joint ventures | (269) | (66) | (116) | (11) | (2) | (13) | 7 | (10) | |||||||||||||||||||||||||||
Interest and other income (expense), net | 140 | 74 | 250 | 93 | 7 | 13 | (750) | 19 | |||||||||||||||||||||||||||
(35,284) | (11,969) | 53,959 | (13,927) | 6,218 | (13,981) | (15,354) | (13,564) | ||||||||||||||||||||||||||||
Net income (loss) | ($15,863) | $8,230 | $75,513 | $4,315 | $27,210 | $2,601 | $4,484 | $4,891 |
1Includes third party and travel costs related to the pursuit of acquisitions and developments.
HEALTHCARE REALTY | 4Q 2020 SUPPLEMENTAL INFORMATION 9 |
FFO, Normalized FFO, & FAD 1, 2 | ||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | ||
4Q 2020 | 3Q 2020 | 2Q 2020 | 1Q 2020 | 4Q 2019 | 3Q 2019 | 2Q 2019 | 1Q 2019 | |||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $(15,863) | $8,230 | $75,513 | $4,315 | $27,210 | $2,601 | $4,484 | $4,891 | ||||||||||||||||||||||||||||||||||||||||||
(Gain) loss on sales of real estate assets | 34 | (2,177) | (68,267) | 49 | (20,036) | (200) | (4,849) | (15) | ||||||||||||||||||||||||||||||||||||||||||
Impairments of real estate assets | — | — | — | — | 7 | — | 5,610 | — | ||||||||||||||||||||||||||||||||||||||||||
Real estate depreciation and amortization | 49,251 | 48,215 | 48,577 | 48,531 | 46,962 | 45,846 | 44,602 | 43,303 | ||||||||||||||||||||||||||||||||||||||||||
Unconsolidated JV depreciation and amortization | 323 | 80 | 80 | 80 | 80 | 80 | 80 | 80 | ||||||||||||||||||||||||||||||||||||||||||
FFO | $33,745 | $54,348 | $55,903 | $52,975 | $54,223 | $48,327 | $49,927 | $48,259 | ||||||||||||||||||||||||||||||||||||||||||
Acquisition and pursuit costs 3 | 939 | 440 | 431 | 750 | 515 | 501 | 422 | 305 | ||||||||||||||||||||||||||||||||||||||||||
Lease intangible amortization | (4) | (35) | (16) | 745 | 4 | 5 | 54 | 84 | ||||||||||||||||||||||||||||||||||||||||||
Accelerated stock awards 4 | — | — | — | — | — | 2,854 | — | — | ||||||||||||||||||||||||||||||||||||||||||
Debt financing costs | 21,920 | — | — | — | — | — | 760 | — | ||||||||||||||||||||||||||||||||||||||||||
Unconsolidated JV normalizing items 5 | 16 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Normalized FFO | $56,616 | $54,753 | $56,318 | $54,470 | $54,742 | $51,687 | $51,163 | $48,648 | ||||||||||||||||||||||||||||||||||||||||||
Non-real estate depreciation and amortization | 724 | 785 | 822 | 823 | 838 | 838 | 829 | 763 | ||||||||||||||||||||||||||||||||||||||||||
Non-cash interest expense amortization 6 | 976 | 934 | 1,035 | 746 | 731 | 727 | 707 | 702 | ||||||||||||||||||||||||||||||||||||||||||
Provision for bad debt, net | (511) | (144) | 945 | (83) | 124 | (32) | 150 | (75) | ||||||||||||||||||||||||||||||||||||||||||
Straight-line rent income, net | (645) | (543) | (390) | (668) | (789) | (387) | (9) | (278) | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 2,472 | 2,445 | 2,405 | 2,599 | 2,133 | 2,375 | 2,372 | 2,639 | ||||||||||||||||||||||||||||||||||||||||||
Unconsolidated JV non-cash items 7 | 4 | 8 | 8 | 8 | 8 | 8 | 8 | 8 | ||||||||||||||||||||||||||||||||||||||||||
Normalized FFO adjusted for non-cash items | 59,636 | 58,238 | 61,143 | 57,895 | 57,787 | 55,216 | 55,220 | 52,407 | ||||||||||||||||||||||||||||||||||||||||||
2nd generation TI | (8,841) | (5,323) | (6,005) | (6,040) | (12,126) | (6,114) | (6,124) | (4,326) | ||||||||||||||||||||||||||||||||||||||||||
Leasing commissions paid | (3,288) | (1,999) | (2,258) | (2,824) | (4,970) | (2,697) | (2,315) | (1,347) | ||||||||||||||||||||||||||||||||||||||||||
Capital expenditures | (8,931) | (4,580) | (4,777) | (3,470) | (5,159) | (3,543) | (4,993) | (3,462) | ||||||||||||||||||||||||||||||||||||||||||
Maintenance cap ex | (21,060) | (11,902) | (13,040) | (12,334) | (22,255) | (12,354) | (13,432) | (9,135) | ||||||||||||||||||||||||||||||||||||||||||
FAD | $38,576 | $46,336 | $48,103 | $45,561 | $35,532 | $42,862 | $41,788 | $43,272 | ||||||||||||||||||||||||||||||||||||||||||
Dividends paid | $40,816 | $40,815 | $40,510 | $40,416 | $40,121 | $38,852 | $38,771 | $37,614 | ||||||||||||||||||||||||||||||||||||||||||
TTM dividend payout (dividends paid/FAD) | 91.0 | % | 92.2 | % | 92.9 | % | 95.4 | % | 95.0 | % | 92.4 | % | 94.7 | % | 97.6 | % | ||||||||||||||||||||||||||||||||||
FFO per common share - diluted | $0.25 | $0.40 | $0.42 | $0.40 | $0.41 | $0.37 | $0.39 | $0.39 | ||||||||||||||||||||||||||||||||||||||||||
Normalized FFO per common share - diluted | $0.42 | $0.41 | $0.42 | $0.41 | $0.41 | $0.40 | $0.40 | $0.39 | ||||||||||||||||||||||||||||||||||||||||||
FFO weighted average common shares outstanding - diluted 8 | 135,701 | 135,159 | 134,464 | 133,980 | 133,125 | 129,015 | 128,279 | 124,928 |
1Funds from operations (“FFO”) and FFO per share are operating performance measures adopted by the National Association of Real Estate Investment Trusts, Inc. (“NAREIT”). NAREIT defines FFO as “net income (computed in accordance with GAAP) excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control, and impairment write-downs of certain real assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity.”
2FFO, Normalized FFO and Funds Available for Distribution ("FAD") do not represent cash generated from operating activities determined in accordance with accounting principles generally accepted in the United States of America and is not necessarily indicative of cash available to fund cash needs. FFO, Normalized FFO and FAD should not be considered alternatives to net income attributable to common stockholders as indicators of the Company's operating performance or as alternatives to cash flow as measures of liquidity.
3Acquisition and pursuit costs include third party and travel costs related to the pursuit of acquisitions and developments.
4The Company's former Executive Chairman, David R. Emery, died on September 30, 2019 resulting in $2.9 million of expenses recorded in the third quarter of 2019 associated with the acceleration of his outstanding non-vested share-based awards.
5Includes the Company's proportionate share of acquisition and pursuit costs related to unconsolidated joint ventures.
6Includes the amortization of deferred financing costs, discounts and premiums.
7Includes the Company's proportionate share of straight-line rent, net related to unconsolidated joint ventures.
8The Company utilizes the treasury stock method which includes the dilutive effect of nonvested share-based awards outstanding of 911,261 for the three months ended December 31, 2020.
HEALTHCARE REALTY | 4Q 2020 SUPPLEMENTAL INFORMATION 10 |
Capital Funding & Commitments | ||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | ||
ACQUISITION AND RE/DEVELOPMENT FUNDING | ||||||||||||||||||||||||||||||||||||||
4Q 2020 | 3Q 2020 | 2Q 2020 | 1Q 2020 | 4Q 2019 | ||||||||||||||||||||||||||||||||||
Acquisitions 1 | $273,757 | $108,127 | $ | — | $102,030 | $107,408 | ||||||||||||||||||||||||||||||||
Re/development | 9,204 | 4,709 | 5,664 | 6,916 | 7,028 | |||||||||||||||||||||||||||||||||
1st gen. TI & acquisition capex 2 | 6,327 | 6,471 | 4,991 | 2,731 | 8,184 | |||||||||||||||||||||||||||||||||
MAINTENANCE CAPITAL EXPENDITURES | ||||||||||||||||||||||||||||||||||||||
4Q 2020 | 3Q 2020 | 2Q 2020 | 1Q 2020 | 4Q 2019 | ||||||||||||||||||||||||||||||||||
$ Spent | ||||||||||||||||||||||||||||||||||||||
2nd generation TI | $8,841 | $5,323 | $6,005 | $6,040 | $12,126 | |||||||||||||||||||||||||||||||||
Leasing commissions paid | 3,288 | 1,999 | 2,258 | 2,824 | 4,970 | |||||||||||||||||||||||||||||||||
Capital expenditures | 8,931 | 4,580 | 4,777 | 3,470 | 5,159 | |||||||||||||||||||||||||||||||||
$21,060 | $11,902 | $13,040 | $12,334 | $22,255 | ||||||||||||||||||||||||||||||||||
% of Cash NOI | ||||||||||||||||||||||||||||||||||||||
2nd generation TI | 11.8 | % | 7.1 | % | 7.8 | % | 8.0 | % | 16.2 | % | ||||||||||||||||||||||||||||
Leasing commissions paid | 4.4 | % | 2.7 | % | 2.9 | % | 3.8 | % | 6.6 | % | ||||||||||||||||||||||||||||
Capital expenditures | 11.9 | % | 6.1 | % | 6.2 | % | 4.6 | % | 6.9 | % | ||||||||||||||||||||||||||||
28.1 | % | 15.9 | % | 17.0 | % | 16.4 | % | 29.7 | % | |||||||||||||||||||||||||||||
LEASING COMMITMENTS | ||||||||||||||||||||||||||||||||||||||
4Q 2020 | 3Q 2020 | 2Q 2020 | 1Q 2020 | 4Q 2019 | ||||||||||||||||||||||||||||||||||
Renewals | ||||||||||||||||||||||||||||||||||||||
Square feet | 421,652 | 669,687 | 393,496 | 342,614 | 381,561 | |||||||||||||||||||||||||||||||||
2nd generation TI/square foot/lease year | $1.48 | $1.49 | $1.78 | $1.65 | $3.15 | |||||||||||||||||||||||||||||||||
Leasing commissions/square foot/lease year | $0.85 | $1.13 | $0.86 | $0.80 | $0.91 | |||||||||||||||||||||||||||||||||
Renewal commitments as a % of annual net rent | 9.0 | % | 11.2 | % | 13.0 | % | 11.1 | % | 17.3 | % | ||||||||||||||||||||||||||||
WALT (in months) 3 | 53.3 | 48.8 | 45.1 | 46.3 | 56.6 | |||||||||||||||||||||||||||||||||
New leases | ||||||||||||||||||||||||||||||||||||||
Square feet | 82,538 | 111,310 | 108,485 | 97,305 | 117,274 | |||||||||||||||||||||||||||||||||
2nd generation TI/square foot/lease year | $6.28 | $5.38 | $6.40 | $4.07 | $5.06 | |||||||||||||||||||||||||||||||||
Leasing commissions/square foot/lease year | $1.48 | $1.01 | $1.30 | $1.06 | $1.60 | |||||||||||||||||||||||||||||||||
New lease commitments as a % of annual net rent | 35.9 | % | 28.3 | % | 42.3 | % | 23.5 | % | 32.9 | % | ||||||||||||||||||||||||||||
WALT (in months) 3 | 77.3 | 89.0 | 74.8 | 75.3 | 69.0 | |||||||||||||||||||||||||||||||||
All | ||||||||||||||||||||||||||||||||||||||
Square feet | 504,190 | 780,997 | 501,981 | 439,919 | 498,835 | |||||||||||||||||||||||||||||||||
Leasing commitments as a % of annual net rent | 13.9 | % | 15.0 | % | 21.3 | % | 14.9 | % | 21.0 | % | ||||||||||||||||||||||||||||
WALT (in months) 3 | 57.3 | 54.6 | 51.5 | 52.7 | 59.5 | |||||||||||||||||||||||||||||||||
1Acquisitions include properties acquired through joint ventures at the Company's ownership percentage. Acquisitions exclude the first quarter and third quarter of 2020 purchases of land previously ground leased totaling $1.6 million and $1.0 million and also excludes the fourth quarter of 2020 purchase of land held for development totaling $2.6 million.
2Planned capital expenditures for acquisitions include expected near-term fundings that were contemplated as part of the acquisition.
3WALT = weighted average lease term.
HEALTHCARE REALTY | 4Q 2020 SUPPLEMENTAL INFORMATION 11 |
Debt Metrics | ||
DOLLARS IN THOUSANDS | ||
SUMMARY OF INDEBTEDNESS AS OF DECEMBER 31, 2020 | ||||||||||||||||||||
PRINCIPAL BALANCE | BALANCE 1 | INTEREST EXPENSE | MONTHS TO MATURITY | CONTRACTUAL RATE | EFFECTIVE RATE | |||||||||||||||
Senior notes due April 2023 2 | $— | $— | $453 | — | 3.75 | % | 3.95 | % | ||||||||||||
Senior notes due May 2025 3 | 250,000 | 248,776 | 2,469 | 52 | 3.88 | % | 4.08 | % | ||||||||||||
Senior notes due January 2028 | 300,000 | 296,123 | 2,777 | 84 | 3.63 | % | 3.84 | % | ||||||||||||
Senior notes due March 2030 4 | 300,000 | 296,468 | 1,929 | 111 | 2.40 | % | 2.71 | % | ||||||||||||
Senior notes due March 2031 | 300,000 | 294,924 | 1,572 | 123 | 2.05 | % | 2.24 | % | ||||||||||||
Total senior notes outstanding | $1,150,000 | $1,136,291 | $9,200 | 94 | 2.95 | % | 3.18 | % | ||||||||||||
$700 million unsecured credit facility due May 2023 | — | — | — | 29 | LIBOR + 0.90% | 1.04 | % | |||||||||||||
$200 million unsecured term loan facility due May 2024 5 | 200,000 | 199,236 | 1,013 | 41 | LIBOR + 1.00% | 1.99 | % | |||||||||||||
$150 million unsecured term loan facility due June 2026 6 | 150,000 | 149,479 | 1,203 | 65 | LIBOR + 1.60% | 3.14 | % | |||||||||||||
Mortgage notes payable, net | 117,221 | 117,763 | 1,125 | 44 | 4.20 | % | 4.07 | % | ||||||||||||
Total outstanding notes and bonds payable | $1,617,221 | $1,602,769 | $12,541 | 81 | 2.94 | % | 3.09 | % | ||||||||||||
Interest cost capitalization | (229) | |||||||||||||||||||
Unsecured credit facility fee and deferred financing costs | 1,059 | |||||||||||||||||||
Financing lease right-of-use assets | 247 | |||||||||||||||||||
Total quarterly consolidated interest expense | $13,618 |
DEBT MATURITIES SCHEDULE AS OF DECEMBER 31, 2020 | ||||||||||||||||||||||||||||||||
PRINCIPAL PAYMENTS | WEIGHTED AVERAGE RATE | |||||||||||||||||||||||||||||||
BANK LOANS | SENIOR NOTES | MORTGAGE NOTES | TOTAL | BANK LOANS | SENIOR NOTES | MORTGAGE NOTES | TOTAL | |||||||||||||||||||||||||
2021 | $3,913 | $3,913 | — | % | — | % | 4.51 | % | 4.51 | % | ||||||||||||||||||||||
2022 | 13,434 | 13,434 | — | % | — | % | 3.81 | % | 3.81 | % | ||||||||||||||||||||||
2023 2 | 30,701 | 30,701 | — | % | — | % | 4.21 | % | 4.21 | % | ||||||||||||||||||||||
2024 | $200,000 | 26,449 | 226,449 | 1.99 | % | — | % | 4.48 | % | 2.28 | % | |||||||||||||||||||||
2025 | $250,000 | 17,415 | 267,415 | — | % | 3.88 | % | 4.35 | % | 3.91 | % | |||||||||||||||||||||
2026 | 150,000 | 24,879 | 174,879 | 3.14 | % | — | % | 3.93 | % | 3.26 | % | |||||||||||||||||||||
2027 | 430 | 430 | — | % | — | % | 6.17 | % | 6.17 | % | ||||||||||||||||||||||
2028 | 300,000 | 300,000 | — | % | 3.63 | % | — | % | 3.63 | % | ||||||||||||||||||||||
2029 | — | — | % | — | % | — | % | — | % | |||||||||||||||||||||||
Thereafter | 600,000 | 600,000 | — | % | 2.23 | % | — | % | 2.23 | % | ||||||||||||||||||||||
Total | $350,000 | $1,150,000 | $117,221 | $1,617,221 | 2.48 | % | 2.95 | % | 4.20 | % | 2.94 | % | ||||||||||||||||||||
Weighted average rate | 2.48 | % | 2.95 | % | 4.20 | % | 2.94 | % |
1Balances are reflected net of discounts and deferred financing costs and include premiums.
2On October 19, 2020, the Company redeemed the Senior notes due April 2023, including a make-whole payment of $20.4 million.
3The effective interest rate includes the impact of the $1.7 million settlement of a forward-starting interest rate swap that is included in accumulated other comprehensive income on the Company's Condensed Consolidated Balance Sheets.
4The effective interest rate includes the impact of the $4.3 million settlement of forward interest rate hedges that are included in accumulated other comprehensive income on the Company's Condensed Consolidated Balance Sheets.
5The effective interest rate includes the impact of interest rate swaps on $75.0 million at a weighted average rate of 2.37% (plus the applicable margin rate, currently 100 basis points).
6The effective interest rate includes the impact of interest rate swaps on $100.0 million at a weighted average rate of 2.23% (plus the applicable margin rate, currently 160 basis points).
HEALTHCARE REALTY | 4Q 2020 SUPPLEMENTAL INFORMATION 12 |
Debt Covenants | ||
DOLLARS IN THOUSANDS | ||
SELECTED FINANCIAL DEBT COVENANTS TTM ENDED DECEMBER 31, 2020 1 | |||||||||||
CALCULATION | REQUIREMENT | PER DEBT COVENANTS | |||||||||
Revolving credit facility and term loan 2 | |||||||||||
Leverage ratio | Total debt/total capital | Not greater than 60% | 33.9 | % | |||||||
Secured leverage ratio | Total secured debt/total capital | Not greater than 30% | 2.4 | % | |||||||
Unencumbered leverage ratio | Unsecured debt/unsecured real estate | Not greater than 60% | 34.9 | % | |||||||
Fixed charge coverage ratio | EBITDA/fixed charges | Not less than 1.50x | 4.5x | ||||||||
Unsecured coverage ratio | Unsecured EBITDA/unsecured interest | Not less than 1.75x | 5.0x | ||||||||
Construction and development | CIP/total assets | Not greater than 15% | 0.0 | % | |||||||
Unconsolidated joint ventures | Unconsolidated joint ventures/total assets | Not greater than 15% | 2.0 | % | |||||||
Asset investments | Unimproved land, stock & mortgages/total assets | Not greater than 20% | 0.7 | % | |||||||
Senior Notes due 2030 and 2031 3 | |||||||||||
Incurrence of total debt | Total debt/total assets | Not greater than 60% | 33.8 | % | |||||||
Incurrence of debt secured by any lien | Secured debt/total assets | Not greater than 40% | 2.4 | % | |||||||
Maintenance of total unsecured assets | Unencumbered assets/unsecured debt | Not less than 150% | 298.7 | % | |||||||
Debt service coverage | EBITDA/interest expense | Not less than 1.5x | 5.1x | ||||||||
Other Senior Notes 4 | |||||||||||
Incurrence of total debt | Total debt/total assets | Not greater than 60% | 35.1 | % | |||||||
Incurrence of debt secured by any lien | Secured debt/total assets | Not greater than 40% | 2.5 | % | |||||||
Maintenance of total unsecured assets | Unencumbered assets/unsecured debt | Not less than 150% | 286.9 | % | |||||||
Debt service coverage | EBITDA/interest expense | Not less than 1.5x | 5.0x | ||||||||
Other | |||||||||||
Net debt to adjusted EBITDA 5 | Net debt (debt less cash)/adjusted EBITDA | Not required | 5.2x | ||||||||
Net debt to enterprise value 6 | Net Debt/enterprise value | Not required | 28.0 | % |
1Does not include all financial and non-financial covenants and restrictions that are required by the Company's various debt agreements. All financial measures include the Company's proportionate share of unconsolidated joint ventures.
2As part of the Company's amendment to the credit facility and term loan agreements during the second quarter of 2019, the financial covenants were updated to exclude the impact of the Topic 842, Lease Accounting from the covenant calculations.
3The financial covenants for the Senior Note due 2030 exclude the impact of Topic 842, Lease Accounting from the financial covenant calculations.
4The senior note covenants calculations apply to the Senior Notes due 2025 and 2028. The Senior Notes due 2023 have similar covenants but contain a less restrictive definition of total assets.
5Adjusted EBITDA is based on the current quarter results, annualized. See page 26 for a reconciliation of adjusted EBITDA. Net debt does not include lease liabilities.
6Based on the closing price of $29.60 on December 31, 2020 and 139,487,375 shares outstanding. Debt does not include lease liabilities.
HEALTHCARE REALTY | 4Q 2020 SUPPLEMENTAL INFORMATION 13 |
Acquisition & Disposition Activity | ||
DOLLARS IN THOUSANDS | ||
MOB ACQUISITION ACTIVITY | ||||||||||||||||||||||||||
MARKET | MILES TO CAMPUS | ASSOCIATED HEALTH SYSTEM/TENANCY | CLOSING | SQUARE FEET | LEASED % | PURCHASE PRICE 1 | % OWNERSHIP | CAP RATE 2 | ||||||||||||||||||
Los Angeles, CA | 0.14 | MemorialCare Health | 1/3/2020 | 86,986 | 79 | % | $42,000 | 100 | % | 5.3 | % | |||||||||||||||
Atlanta, GA | 0.10 | Wellstar Health System | 2/13/2020 | 64,624 | 94 | % | 11,965 | 100 | % | 5.6 | % | |||||||||||||||
Raleigh, NC | 0.04 | WakeMed Health | 2/25/2020 | 15,964 | 100 | % | 6,325 | 100 | % | 6.7 | % | |||||||||||||||
Colorado Springs, CO | 1.60 | CommonSpirit Health | 3/9/2020 | 34,210 | 100 | % | 8,240 | 100 | % | 6.5 | % | |||||||||||||||
Denver, CO 3 | 0.24 | UCHealth | 3/13/2020 | 136,994 | 94 | % | 33,500 | 100 | % | 6.1 | % | |||||||||||||||
San Diego, CA | 0.04 | Palomar Health | 7/1/2020 | 46,083 | 92 | % | 16,650 | 100 | % | 5.9 | % | |||||||||||||||
Los Angeles, CA | 0.11 | Cedars-Sinai-Huntington | 7/17/2020 | 49,785 | 100 | % | 35,000 | 100 | % | 5.4 | % | |||||||||||||||
Seattle, WA 4 | 0.06 | MultiCare Health System | 7/23/2020 | 21,309 | 100 | % | 11,025 | 100 | % | 5.6 | % | |||||||||||||||
Atlanta, GA | 0.13 | Wellstar Health System | 7/31/2020 | 48,145 | 100 | % | 20,452 | 100 | % | 6.2 | % | |||||||||||||||
Houston, TX | 0.03 | Memorial Hermann | 9/24/2020 | 40,235 | 89 | % | 11,000 | 100 | % | 5.6 | % | |||||||||||||||
Los Angeles, CA | 0.03 | Providence St. Joseph | 9/28/2020 | 24,252 | 95 | % | 14,000 | 100 | % | 5.6 | % | |||||||||||||||
Colorado Springs, CO | 1.60 | CommonSpirit Health | 10/7/2020 | 36,720 | 93 | % | 8,925 | 100 | % | 6.5 | % | |||||||||||||||
Greensboro, NC 3 | 0.02 | Cone Health-Sentara | 11/9/2020 | 149,400 | 92 | % | 45,105 | 100 | % | 5.5 | % | |||||||||||||||
Memphis, TN | 0.90 | UT Health/Methodist/BMG | 11/9/2020 | 135,270 | 82 | % | 26,305 | 100 | % | 5.7 | % | |||||||||||||||
Minneapolis, MN | 0.00 | Allina Health | 11/12/2020 | 92,139 | 80 | % | 16,615 | 50 | % | 5.1 | % | |||||||||||||||
Memphis, TN | 0.00 | Baptist Memorial (BMG) | 11/18/2020 | 40,192 | 93 | % | 7,005 | 100 | % | 6.5 | % | |||||||||||||||
Nashville, TN | 0.10 | Ascension Health | 12/1/2020 | 38,736 | 95 | % | 14,000 | 100 | % | 5.2 | % | |||||||||||||||
Minneapolis, MN | 2.50 | Summit Orthopedics | 12/7/2020 | 48,594 | 100 | % | 15,510 | 50 | % | 6.8 | % | |||||||||||||||
Los Angeles, CA | 0.00 | MemorialCare Health | 12/8/2020 | 135,904 | 87 | % | 80,628 | 50 | % | 4.9 | % | |||||||||||||||
Greensboro, NC | 0.25 | Cone Health-Sentara | 12/17/2020 | 27,599 | 100 | % | 10,500 | 100 | % | 5.4 | % | |||||||||||||||
San Diego, CA | 4.40 | None | 12/22/2020 | 45,157 | 91 | % | 37,350 | 100 | % | 5.2 | % | |||||||||||||||
Atlanta, GA 5 | 0.22 | NGHS/Northside | 12/29/2020 | 125,404 | 100 | % | 50,053 | 100 | % | 5.2 | % | |||||||||||||||
Los Angeles, CA | 1.60 | MemorialCare Health | 12/29/2020 | 48,759 | 89 | % | 13,125 | 50 | % | 6.0 | % | |||||||||||||||
Greensboro, NC | 0.00 | Cone Health-Sentara | 12/30/2020 | 35,373 | 100 | % | 11,575 | 100 | % | 6.0 | % | |||||||||||||||
2020 Total 6 | 1,527,834 | 92 | % | $546,853 | 5.5 | % | ||||||||||||||||||||
Subsequent activity | ||||||||||||||||||||||||||
San Diego, CA 4 | 0.02 | UCSD/Scripps Health | 1/7/2021 | 22,461 | 100 | % | $17,150 | 100 | % | 5.4 | % | |||||||||||||||
Dallas, TX 5 | 0.00 | Baylor Scott & White Health | 2/1/2021 | 121,709 | 66 | % | 22,515 | 100 | % | 5.1 | % |
DISPOSITION ACTIVITY | ||||||||||||||||||||||||||
LOCATION | TYPE 7 | MILES TO CAMPUS | ASSOCIATED HEALTH SYSTEM | CLOSING | SALES PRICE | SQUARE FEET | LEASED % | CAP RATE 8 | ||||||||||||||||||
Springfield, MO 4 | SF | NA | Mercy (St. Louis) | 7/30/2020 | $137,987 | 186,000 | 100 | % | 7.5 | % | ||||||||||||||||
Oklahoma City, OK 4 | MOB | 1.10 | Mercy (St. Louis) | 7/30/2020 | 106,469 | 200,000 | 100 | % | 7.5 | % | ||||||||||||||||
Miami, FL | MOB | 0.00 | HCA | 9/30/2020 | 4,987 | 26,000 | 78 | % | 3.9 | % | ||||||||||||||||
2020 Total | $249,443 | 412,000 | 99 | % | 7.4 | % |
1Includes joint venture acquisitions at full acquisition price.
2For acquisitions, cap rate represents the forecasted first year NOI divided by purchase price. Does not include fees earned related to the unconsolidated joint venture.
3Includes three properties.
4Represents a single-tenant property.
5Includes two properties.
6Total excludes the first quarter and third quarter of 2020 purchases of land previously ground leased totaling $1.6 million and $1.0 million, respectively and excludes the fourth quarter of 2020 purchase of land held for development totaling $2.5 million.
7MOB = Medical office building; SF = Surgical facility
8For dispositions, cap rate represents the in-place cash NOI divided by sales price.
HEALTHCARE REALTY | 4Q 2020 SUPPLEMENTAL INFORMATION 14 |
Re/Development Activity | ||
DOLLARS IN THOUSANDS | ||
UNDER RE/DEVELOPMENT | ||||||||||||||||||||||||||||||||
MARKET | TYPE | MILES TO CAMPUS | SQUARE FEET | BUDGET | FUNDINGS THRU 12/31/20 | REMAINING FUNDINGS | LEASED % | EXPECTED QTR NOI AT LEASED % | EXPECTED STABILIZED YIELD | ASSOCIATED HEALTH SYSTEM | ||||||||||||||||||||||
Memphis, TN 1 | Redev | 0.26 | 110,883 | $30,200 | $21,650 | $8,550 | 97 | % | $560 | 7.6 | % | Baptist Memorial | ||||||||||||||||||||
Dallas, TX 2 | Redev | 0.0 | 217,114 | 16,900 | 423 | 16,477 | 58 | % | 464 | 6.5 | % | Baylor Scott & White | ||||||||||||||||||||
Total | 327,997 | $47,100 | $22,073 | $25,027 | 71 | % | $1,024 | 7.2 | % | |||||||||||||||||||||||
EXPECTED NOI AND OCCUPANCY RAMP UP TO LEASED %3 | ||||||||||||||||||||||||||||||||
Q4 2020 | Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 | Q1 2022 | |||||||||||||||||||||||||||
Cash NOI | ||||||||||||||||||||||||||||||||
Memphis, TN | — | $226 | $381 | $519 | $560 | $566 | ||||||||||||||||||||||||||
Dallas, TX | 489 | 514 | 481 | 467 | 464 | 467 | ||||||||||||||||||||||||||
Total | $489 | $740 | $862 | $986 | $1,024 | $1,033 | ||||||||||||||||||||||||||
Average occupancy | ||||||||||||||||||||||||||||||||
Memphis, TN | 44 | % | 60 | % | 76 | % | 87 | % | 97 | % | 97 | % | ||||||||||||||||||||
Dallas, TX | 86 | % | 86 | % | 86 | % | 72 | % | 58 | % | 58 | % | ||||||||||||||||||||
Total | 72 | % | 77 | % | 83 | % | 77 | % | 71 | % | 71 | % | ||||||||||||||||||||
HISTORICAL INVESTMENT ACTIVITY | ||||||||||||||||||||||||||
ACQUISITIONS 4 | RE/DEVELOPMENT FUNDING | TOTAL INVESTMENTS | DISPOSITIONS | NET INVESTMENTS | ||||||||||||||||||||||
2016 | $241,939 | $45,343 | $287,282 | $94,683 | $192,599 | |||||||||||||||||||||
2017 | 327,167 | 32,305 | 359,472 | 122,700 | 236,772 | |||||||||||||||||||||
2018 | 111,450 | 35,567 | 147,017 | 98,691 | 48,326 | |||||||||||||||||||||
2019 | 381,314 | 28,584 | 409,898 | 54,860 | 355,038 | |||||||||||||||||||||
2020 | 546,853 | 26,493 | 573,346 | 249,443 | 323,903 | |||||||||||||||||||||
Average (2016-2020) | $321,745 | $33,658 | $355,403 | $124,075 | $231,328 | |||||||||||||||||||||
% of Total | 90.5 | % | 9.5 | % | 100.0 | % |
1The project includes the acquisition of a 110,883 square foot medical office building for $8.7 million and redevelopment costs related to the property.
2The 110,860 square foot fitness center lease will be reduced to 51,740 square foot when Cowboys Fit is expected to take occupancy in Q3 2021.
3Does not reflect the impact of capitalized interest that will be reduced at lease commencement.
4Includes joint venture acquisitions on the full acquisition price and was not adjusted for the Company's ownership percentage.
HEALTHCARE REALTY | 4Q 2020 SUPPLEMENTAL INFORMATION 15 |
Portfolio 1, 2 | ||
DOLLARS IN THOUSANDS | ||
MARKETS (BY SQUARE FEET) | ||||||||||||||||||||||||||||||||||||||
MOB 95.3% | NON-MOB 4.7% | |||||||||||||||||||||||||||||||||||||
MARKET | MSA RANK | INVESTMENT 1 | COUNT | CONSOLIDATED | JOINT VENTURE | INPATIENT/SURGICAL | OFFICE | TOTAL | % OF TOTAL | |||||||||||||||||||||||||||||
Dallas, TX | 4 | $495,460 | 21 | 1,883,038 | 156,245 | 145,365 | 2,184,648 | 13.3 | % | |||||||||||||||||||||||||||||
Seattle, WA | 15 | 659,367 | 27 | 1,545,539 | 1,545,539 | 9.4 | % | |||||||||||||||||||||||||||||||
Los Angeles, CA | 2 | 393,524 | 19 | 870,820 | 184,663 | 63,000 | 1,118,483 | 6.8 | % | |||||||||||||||||||||||||||||
Nashville, TN | 36 | 224,682 | 7 | 805,259 | 108,691 | 913,950 | 5.6 | % | ||||||||||||||||||||||||||||||
Charlotte, NC | 22 | 182,812 | 16 | 860,735 | 860,735 | 5.2 | % | |||||||||||||||||||||||||||||||
Denver, CO | 19 | 190,875 | 12 | 694,362 | 93,869 | 788,231 | 4.8 | % | ||||||||||||||||||||||||||||||
Atlanta, GA | 9 | 310,035 | 13 | 781,922 | 781,922 | 4.8 | % | |||||||||||||||||||||||||||||||
Memphis, TN | 43 | 134,812 | 9 | 691,338 | 691,338 | 4.2 | % | |||||||||||||||||||||||||||||||
Houston, TX | 5 | 162,459 | 10 | 603,995 | 57,170 | 661,165 | 4.0 | % | ||||||||||||||||||||||||||||||
Richmond, VA | 44 | 151,391 | 7 | 548,801 | 548,801 | 3.4 | % | |||||||||||||||||||||||||||||||
Des Moines, IA | 82 | 138,862 | 7 | 379,955 | 152,655 | 532,610 | 3.2 | % | ||||||||||||||||||||||||||||||
Indianapolis, IN | 33 | 120,487 | 4 | 526,194 | 526,194 | 3.2 | % | |||||||||||||||||||||||||||||||
Washington, DC | 6 | 152,773 | 6 | 507,336 | 507,336 | 3.1 | % | |||||||||||||||||||||||||||||||
San Antonio, TX | 24 | 96,702 | 6 | 473,673 | 473,673 | 2.9 | % | |||||||||||||||||||||||||||||||
Austin, TX | 29 | 108,795 | 5 | 374,886 | 374,886 | 2.3 | % | |||||||||||||||||||||||||||||||
Chicago, IL | 3 | 93,972 | 3 | 352,800 | 352,800 | 2.2 | % | |||||||||||||||||||||||||||||||
Minneapolis, MN | 16 | 78,116 | 6 | 207,508 | 140,733 | 348,241 | 2.1 | % | ||||||||||||||||||||||||||||||
Colorado Springs, CO | 78 | 74,500 | 5 | 312,154 | 312,154 | 1.9 | % | |||||||||||||||||||||||||||||||
Honolulu, HI | 56 | 145,176 | 3 | 298,427 | 298,427 | 1.8 | % | |||||||||||||||||||||||||||||||
San Francisco, CA | 12 | 121,515 | 3 | 286,270 | 286,270 | 1.7 | % | |||||||||||||||||||||||||||||||
Other (17 markets) | 600,252 | 38 | 2,325,272 | 2,325,272 | 14.1 | % | ||||||||||||||||||||||||||||||||
Total | $4,636,567 | 227 | 15,330,284 | 325,396 | 219,245 | 557,750 | 16,432,675 | 100.0 | % | |||||||||||||||||||||||||||||
Number of properties | 216 | 4 | 2 | 5 | 227 | |||||||||||||||||||||||||||||||||
% of square feet | 93.3 | % | 2.0 | % | 1.3 | % | 3.4 | % | 100.0 | % | ||||||||||||||||||||||||||||
% multi-tenant | 96.0 | % | 100.0 | % | — | % | 100.0 | % | 94.9 | % | ||||||||||||||||||||||||||||
Investment 1 | $4,312,866 | $69,534 | $111,148 | $143,019 | $4,636,567 | |||||||||||||||||||||||||||||||||
Quarterly cash NOI 1 | $70,519 | $135 | $3,177 | $1,249 | $75,080 | |||||||||||||||||||||||||||||||||
% of cash NOI | 93.9 | % | 0.2 | % | 4.2 | % | 1.7 | % | 100.0 | % |
BY BUILDING TYPE | ||||||||||||||
CONSOLIDATED | ||||||||||||||
MULTI-TENANT | SINGLE-TENANT | JOINT VENTURE | TOTAL | |||||||||||
Number of properties | 210 | 13 | 4 | 227 | ||||||||||
Square feet | 15,275,040 | 832,239 | 325,396 | 16,432,675 | ||||||||||
% of square feet | 92.9 | % | 5.1 | % | 2.0 | % | 100.0 | % | ||||||
Investment 1 | $4,297,985 | $269,048 | $69,534 | $4,636,567 | ||||||||||
Quarterly cash NOI 1 | $68,552 | $6,393 | $135 | $75,080 | ||||||||||
% of cash NOI | 91.3 | % | 8.5 | % | 0.2 | % | 100.0 | % |
1Investment reflects gross value. Quarterly cash NOI reflects the Company's ownership percentage.
2Excludes assets held for sale, land held for development, construction in progress, Memphis Redevelopment and corporate property.
HEALTHCARE REALTY | 4Q 2020 SUPPLEMENTAL INFORMATION 16 |
Associated Health Systems 1 | ||
MOB PORTFOLIO (BY SQUARE FEET) | |||||||||||||||||||||||||||||
SYSTEM RANK 3 | CREDIT RATING | OFF CAMPUS | % OF TOTAL MOB | ||||||||||||||||||||||||||
HEALTH SYSTEM | ON | ADJACENT 4 | ANCHORED 5 | TOTAL MOB | |||||||||||||||||||||||||
Baylor Scott & White Health | 20 | AA-/Aa3 | 1,644,096 | 280,941 | 163,188 | — | 2,088,225 | 13.3 | % | ||||||||||||||||||||
CommonSpirit Health | 5 | BBB+/Baa1 | 807,182 | 311,310 | 95,486 | 205,840 | 1,419,818 | 9.1 | % | ||||||||||||||||||||
Ascension Health | 3 | AA+/Aa2 | 1,080,681 | 194,617 | — | — | 1,275,298 | 8.1 | % | ||||||||||||||||||||
Atrium Health | 25 | AA-/Aa3 | 393,815 | 98,066 | 313,513 | — | 805,394 | 5.1 | % | ||||||||||||||||||||
Tenet Healthcare | 6 | B/B2 | 570,264 | 67,790 | — | 135,270 | 773,324 | 5.0 | % | ||||||||||||||||||||
UW Medicine (Seattle) | 92 | AA+/Aaa | 345,567 | 102,540 | 44,166 | 125,543 | 617,816 | 4.0 | % | ||||||||||||||||||||
Wellstar Health System | 75 | A/A2 | 476,054 | 112,769 | — | — | 588,823 | 3.8 | % | ||||||||||||||||||||
Bon Secours Mercy Health | 21 | A+/A1 | 548,801 | — | — | — | 548,801 | 3.5 | % | ||||||||||||||||||||
Indiana University Health | 26 | AA/Aa2 | 423,628 | 102,566 | — | — | 526,194 | 3.4 | % | ||||||||||||||||||||
Baptist Memorial Health Care | 90 | BBB+/-- | 464,498 | — | 39,345 | — | 503,843 | 3.2 | % | ||||||||||||||||||||
UCHealth | 46 | AA/Aa3 | 150,291 | 298,093 | 33,850 | — | 482,234 | 3.1 | % | ||||||||||||||||||||
HCA | 1 | BB+/Ba2 | 151,340 | 167,017 | 78,305 | — | 396,662 | 2.5 | % | ||||||||||||||||||||
Providence St. Joseph Health | 4 | AA-/Aa3 | 176,854 | 153,433 | — | 31,601 | 361,888 | 2.3 | % | ||||||||||||||||||||
Trinity Health | 7 | AA-/Aa3 | 267,952 | 73,331 | — | — | 341,283 | 2.2 | % | ||||||||||||||||||||
Hawaii Pacific Health | 182 | --/A1 | 173,502 | — | — | 124,925 | 298,427 | 1.9 | % | ||||||||||||||||||||
Memorial Care Health System | 134 | AA-/-- | 135,904 | 86,986 | — | 48,759 | 271,649 | 1.7 | % | ||||||||||||||||||||
Inova Health System | 70 | AA+/Aa2 | 262,121 | — | — | — | 262,121 | 1.7 | % | ||||||||||||||||||||
Memorial Hermann | 39 | A+/A1 | — | 246,325 | — | — | 246,325 | 1.6 | % | ||||||||||||||||||||
Medstar Health | 45 | A/A2 | 241,739 | — | — | — | 241,739 | 1.5 | % | ||||||||||||||||||||
MultiCare Health System | 82 | AA-/Aa3 | 154,452 | 84,348 | — | — | 238,800 | 1.5 | % | ||||||||||||||||||||
Advocate Aurora Health Care | 14 | AA/Aa3 | 142,955 | 95,436 | — | — | 238,391 | 1.5 | % | ||||||||||||||||||||
Other (27 credit rated systems) | 1,225,884 | 1,313,740 | 146,689 | 179,963 | 2,866,276 | 18.3 | % | ||||||||||||||||||||||
Subtotal - credit rated 6 | 9,837,580 | 3,789,308 | 914,542 | 851,901 | 15,393,331 | 98.3 | % | ||||||||||||||||||||||
Non-credit rated | 102,555 | — | — | 159,794 | 262,349 | 1.7 | % | ||||||||||||||||||||||
Total | 9,940,135 | 3,789,308 | 914,542 | 1,011,695 | 15,655,680 | 100.0 | % | ||||||||||||||||||||||
% of total | 63.5 | % | 24.2 | % | 5.8 | % | 6.5 | % |
1Includes joint venture at total square feet. Excludes construction in progress, Memphis Redevelopment and assets classified as held for sale.
2Includes total square feet of buildings located on-campus, adjacent and off-campus/anchored by healthcare systems.
3Ranked by revenue based on Modern Healthcare's Healthcare Systems Financials Database.
4The Company defines an adjacent property as being no more than 0.25 miles from a hospital campus.
5Includes buildings where health systems lease 40% or more of the property.
6Based on square footage, 90.1% is associated with an investment-grade rated healthcare provider.
HEALTHCARE REALTY | 4Q 2020 SUPPLEMENTAL INFORMATION 17 |
Top Tenants 1 | ||
# OF ASSOCIATED PROPERTIES | LEASED SQUARE FEET | |||||||||||||||||||||||||||||||||||||
TENANT | SYSTEM RANK 2 | CREDIT RATING | # OF LEASES | MOB | INPATIENT/SURGICAL | TOTAL | % OF TOTAL LEASED | % OF TTM REVENUE | ||||||||||||||||||||||||||||||
Baylor Scott & White Health | 20 | AA-/Aa3 | 21 | 141 | 900,936 | 156,245 | 1,057,181 | 7.4 | % | 8.1 | % | |||||||||||||||||||||||||||
Atrium Health | 25 | AA-/Aa3 | 17 | 74 | 658,745 | — | 658,745 | 4.6 | % | 4.0 | % | |||||||||||||||||||||||||||
CommonSpirit Health | 5 | BBB+/Baa1 | 17 | 74 | 568,337 | — | 568,337 | 4.0 | % | 3.9 | % | |||||||||||||||||||||||||||
Indiana University Health | 26 | AA/Aa2 | 4 | 61 | 437,462 | — | 437,462 | 3.1 | % | 2.8 | % | |||||||||||||||||||||||||||
Ascension Health | 3 | AA+/Aa2 | 11 | 65 | 383,222 | — | 383,222 | 2.7 | % | 2.6 | % | |||||||||||||||||||||||||||
WellStar Health System | 75 | A/A2 | 9 | 50 | 347,821 | — | 347,821 | 2.4 | % | 2.2 | % | |||||||||||||||||||||||||||
UW Medicine (Seattle) | 92 | AA+/Aaa | 9 | 27 | 230,152 | — | 230,152 | 1.6 | % | 2.1 | % | |||||||||||||||||||||||||||
Bon Secours Mercy Health | 21 | A+/A1 | 7 | 60 | 278,215 | — | 278,215 | 2.0 | % | 1.8 | % | |||||||||||||||||||||||||||
UCHealth | 46 | AA/Aa3 | 8 | 14 | 221,718 | — | 221,718 | 1.6 | % | 1.7 | % | |||||||||||||||||||||||||||
Proliance Surgeons | - | - | 7 | 18 | 146,539 | — | 146,539 | 1.0 | % | 1.6 | % | |||||||||||||||||||||||||||
Baptist Memorial Health Care | 90 | BBB+/-- | 8 | 39 | 257,180 | — | 257,180 | 1.8 | % | 1.5 | % | |||||||||||||||||||||||||||
Tenet Healthcare | 6 | B/B2 | 10 | 29 | 116,636 | 63,000 | 179,636 | 1.3 | % | 1.4 | % | |||||||||||||||||||||||||||
Medstar Health | 45 | A/A2 | 3 | 54 | 153,353 | — | 153,353 | 1.1 | % | 1.3 | % | |||||||||||||||||||||||||||
Trinity Health | 7 | AA-/Aa3 | 3 | 31 | 165,250 | — | 165,250 | 1.2 | % | 1.1 | % | |||||||||||||||||||||||||||
Providence St. Joseph Health | 4 | AA-/Aa3 | 7 | 22 | 100,739 | — | 100,739 | 0.7 | % | 1.0 | % | |||||||||||||||||||||||||||
Eating Recovery Center | - | B-/Caa1 | 4 | 6 | 100,946 | — | 100,946 | 0.7 | % | 0.9 | % | |||||||||||||||||||||||||||
Hawaii Pacific Health | 182 | --/A1 | 3 | 35 | 91,426 | — | 91,426 | 0.6 | % | 0.9 | % | |||||||||||||||||||||||||||
MultiCare Health System | 82 | AA-/Aa3 | 5 | 18 | 150,201 | — | 150,201 | 1.1 | % | 0.9 | % | |||||||||||||||||||||||||||
USPI 3 | - | - | 5 | 10 | 109,113 | — | 109,113 | 0.8 | % | 0.8 | % | |||||||||||||||||||||||||||
DaVita | - | BB/Ba2 | 14 | 16 | 126,832 | — | 126,832 | 0.9 | % | 0.8 | % | |||||||||||||||||||||||||||
Inova Health | 70 | AA+/Aa2 | 3 | 10 | 90,533 | — | 90,533 | 0.6 | % | 0.8 | % | |||||||||||||||||||||||||||
Labcorp of America | - | BBB/Baa2 | 23 | 26 | 179,921 | — | 179,921 | 1.3 | % | 0.8 | % | |||||||||||||||||||||||||||
Kaiser Permanente | 2 | AA-/-- | 3 | 10 | 101,830 | — | 101,830 | 0.7 | % | 0.8 | % | |||||||||||||||||||||||||||
Memorial Hermann | 39 | A+/A1 | 2 | 2 | 99,874 | — | 99,874 | 0.7 | % | 0.7 | % | |||||||||||||||||||||||||||
Overlake Health System | 294 | A/A2 | 2 | 8 | 73,676 | — | 73,676 | 0.5 | % | 0.7 | % | |||||||||||||||||||||||||||
HCA | 1 | BB+/Ba2 | 5 | 14 | 84,358 | — | 84,358 | 0.6 | % | 0.7 | % | |||||||||||||||||||||||||||
Allina Health | 57 | AA-/Aa3 | 3 | 14 | 94,599 | — | 94,599 | 0.7 | % | 0.5 | % | |||||||||||||||||||||||||||
Advocate Health Care | 14 | AA/Aa3 | 2 | 10 | 58,166 | — | 58,166 | 0.4 | % | 0.5 | % | |||||||||||||||||||||||||||
Cedars-Sinai Health | 51 | --/Aa3 | 1 | 14 | 47,661 | — | 47,661 | 0.3 | % | 0.5 | % | |||||||||||||||||||||||||||
Univ. of MD Medical Center | 61 | A/A2 | 2 | 10 | 75,495 | — | 74,495 | 0.5 | % | 0.5 | % | |||||||||||||||||||||||||||
Top 30 tenants | 962 | 6,450,936 | 219,245 | 6,670,181 | 46.9 | % | 47.9 | % | ||||||||||||||||||||||||||||||
Total investment-grade tenants 4 | 940 | 6,415,088 | 156,245 | 6,571,333 | 46.2 | % | 45.1 | % |
1Includes joint venture properties and excludes construction in progress, Memphis Redevelopment and assets classified as held for sale.
2Ranked by revenue based on Modern Healthcare's Healthcare Systems Financials Database.
3As of December 31, 2020, USPI is approximately 95% owned by Tenet Health.
4Includes affiliates of investment grade tenants.
HEALTHCARE REALTY | 4Q 2020 SUPPLEMENTAL INFORMATION 18 |
MOB Proximity to Hospital 1, 2 | ||
MEDICAL OFFICE BUILDINGS BY LOCATION | |||||||||||||||||
CONSOLIDATED | |||||||||||||||||
MULTI-TENANT | SINGLE-TENANT | JOINT VENTURE | TOTAL | ||||||||||||||
On campus | 63.7 | % | 54.7 | % | 70.1 | % | 63.5 | % | |||||||||
Adjacent to campus 3 | 24.1 | % | 42.1 | % | — | % | 24.2 | % | |||||||||
Total on/adjacent | 87.8 | % | 96.8 | % | 70.1 | % | 87.7 | % | |||||||||
Off campus - anchored by health system 4 | 6.0 | % | 3.2 | % | — | % | 5.8 | % | |||||||||
Off campus | 6.2 | % | — | % | 29.9 | % | 6.5 | % | |||||||||
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
% of total | 94.1 | % | 3.8 | % | 2.1 | % | 100.0 | % |
DISTANCE TO HOSPITAL CAMPUS | |||||||||||||||||||||||||||||
GROUND LEASE PROPERTIES | |||||||||||||||||||||||||||||
GREATER THAN | LESS THAN OR EQUAL TO | # OF PROPERTIES | SQUARE FEET | % OF TOTAL | CUMULATIVE % | CAMPUS PROXIMITY | # OF PROPERTIES | SQUARE FEET | % OF TOTAL | ||||||||||||||||||||
0.00 | 122 | 9,940,135 | 63.5 | % | 63.5 | % | On campus | 88 | 7,716,672 | 89.4 | % | ||||||||||||||||||
0.00 | 250 yards | 42 | 2,325,244 | 14.9 | % | 78.4 | % | Adjacent 3 | 2 | 128,717 | 1.5 | % | |||||||||||||||||
250 yards | 0.25 miles | 27 | 1,464,064 | 9.3 | % | 87.7 | % | 4 | 120,036 | 1.4 | % | ||||||||||||||||||
0.25 miles | 0.50 | 4 | 286,818 | 1.8 | % | 89.5 | % | Off campus | 1 | 124,925 | 1.4 | % | |||||||||||||||||
0.50 | 1.00 | 3 | 416,143 | 2.7 | % | 92.2 | % | — | — | — | % | ||||||||||||||||||
1.00 | 2.00 | 7 | 439,130 | 2.8 | % | 95.0 | % | 4 | 319,446 | 3.7 | % | ||||||||||||||||||
2.00 | 5.00 | 9 | 446,067 | 2.8 | % | 97.8 | % | 1 | 13,818 | 0.2 | % | ||||||||||||||||||
5.00 | 10.00 | 3 | 205,631 | 1.3 | % | 99.1 | % | 3 | 205,631 | 2.4 | % | ||||||||||||||||||
10.00 | 3 | 132,443 | 0.9 | % | 100.0 | % | — | — | — | % | |||||||||||||||||||
Total | 220 | 15,655,675 | 100.0 | % | 103 | 8,629,245 | 100.0 | % |
1Includes joint venture properties and excludes construction in progress, Memphis Redevelopment and assets classified as held for sale.
2Proximity to hospital campus includes acute care hospitals with inpatient beds. The Company does not consider inpatient rehab hospitals (IRFs), skilled nursing facilities (SNFs) or long-term acute care hospitals (LTACHs) to be hospital campuses for distance calculations.
3The Company defines an adjacent property as being no more than 0.25 miles from a hospital campus.
4Includes buildings where health systems lease 40% or more of the property.
HEALTHCARE REALTY | 4Q 2020 SUPPLEMENTAL INFORMATION 19 |
Lease Maturity, Lease & Building Size 1 | ||
LEASE MATURITY SCHEDULE | ||||||||||||||||||||||||||||||||
MULTI-TENANT | SINGLE-TENANT | TOTAL | ||||||||||||||||||||||||||||||
# OF LEASES | SQUARE FEET | % OF SQUARE FEET | # OF LEASES | SQUARE FEET | % OF SQUARE FEET | # OF LEASES | SQUARE FEET | % OF TOTAL SQUARE FEET | % OF BASE REVENUE 2 | |||||||||||||||||||||||
2021 | 747 | 2,503,654 | 18.7 | % | 1 | 83,318 | 10.0 | % | 748 | 2,586,972 | 18.2 | % | 17.6 | % | ||||||||||||||||||
2022 | 560 | 1,878,354 | 14.0 | % | 1 | 58,285 | 7.0 | % | 561 | 1,936,639 | 13.6 | % | 14.0 | % | ||||||||||||||||||
2023 | 483 | 1,876,773 | 14.0 | % | — | — | — | % | 483 | 1,876,773 | 13.2 | % | 13.8 | % | ||||||||||||||||||
2024 | 443 | 2,067,938 | 15.4 | % | 1 | 63,000 | 7.6 | % | 444 | 2,130,938 | 15.0 | % | 14.7 | % | ||||||||||||||||||
2025 | 386 | 1,763,411 | 13.2 | % | 2 | 91,561 | 11.0 | % | 388 | 1,854,972 | 13.0 | % | 13.1 | % | ||||||||||||||||||
2026 | 145 | 558,151 | 4.2 | % | — | — | — | % | 145 | 558,151 | 3.9 | % | 3.6 | % | ||||||||||||||||||
2027 | 123 | 588,823 | 4.4 | % | 1 | 156,245 | 18.8 | % | 124 | 745,068 | 5.2 | % | 6.3 | % | ||||||||||||||||||
2028 | 117 | 693,704 | 5.2 | % | 1 | 35,419 | 4.2 | % | 118 | 729,123 | 5.1 | % | 4.7 | % | ||||||||||||||||||
2029 | 109 | 637,873 | 4.8 | % | 4 | 303,370 | 36.4 | % | 113 | 941,243 | 6.6 | % | 6.4 | % | ||||||||||||||||||
2030 | 107 | 442,410 | 3.3 | % | 1 | 19,732 | 2.4 | % | 108 | 462,142 | 3.3 | % | 3.1 | % | ||||||||||||||||||
Thereafter | 84 | 380,860 | 2.8 | % | 1 | 21,309 | 2.6 | % | 85 | 402,169 | 2.9 | % | 2.7 | % | ||||||||||||||||||
Total leased | 3,304 | 13,391,951 | 85.8 | % | 13 | 832,239 | 100.0 | % | 3,317 | 14,224,190 | 86.6 | % | 100.0 | % | ||||||||||||||||||
Total building | 15,600,436 | 100.0 | % | 832,239 | 100.0 | % | 16,432,675 | 100.0 | % | |||||||||||||||||||||||
WALTR (months) 3 | 44.0 | 73.1 | 45.7 | |||||||||||||||||||||||||||||
WALT (months) 3 | 85.2 | 142.8 | 88.7 |
# OF LEASES BY SIZE | BY BUILDING SIZE | |||||||||||||||||||||||||
LEASED SQUARE FEET | MULTI-TENANT 4 | SINGLE-TENANT | BUILDING SQUARE FEET | % OF TOTAL | TOTAL SQUARE FOOTAGE | AVERAGE SQUARE FEET | # OF PROPERTIES | |||||||||||||||||||
0 - 2,500 | 1,767 | — | >100,000 | 39.5 | % | 6,487,282 | 144,162 | 45 | ||||||||||||||||||
2,501 - 5,000 | 818 | — | <100,000 and >75,000 | 25.2 | % | 4,147,738 | 86,411 | 48 | ||||||||||||||||||
5,001 - 7,500 | 266 | — | <75,000 and >50,000 | 17.2 | % | 2,819,778 | 62,662 | 45 | ||||||||||||||||||
7,501 - 10,000 | 152 | — | <50,000 and >25,000 | 15.7 | % | 2,577,600 | 39,055 | 66 | ||||||||||||||||||
10,001 + | 301 | 13 | <25,000 | 2.4 | % | 400,277 | 17,403 | 23 | ||||||||||||||||||
Total Leases | 3,304 | 13 | Total | 100.0 | % | 16,432,675 | 72,391 | 227 |
1Includes joint venture properties and excludes land held for development, construction in progress, Memphis Redevelopment, corporate property and assets classified as held for sale.
2Represents the current annualized minimum rents on in-place leases, excluding the impact of potential lease renewals and straight-line rent.
3WALTR = weighted average lease term remaining; WALT = weighted average lease term.
4The average lease size in the multi-tenant properties is 4,053 square feet.
HEALTHCARE REALTY | 4Q 2020 SUPPLEMENTAL INFORMATION 20 |
Historical Occupancy 1 | ||
DOLLARS IN THOUSANDS | ||
SAME STORE PROPERTIES | ||||||||||||||||||||||||||||||||
4Q 2020 | 3Q 2020 | 2Q 2020 | 1Q 2020 | 4Q 2019 | 3Q 2019 | |||||||||||||||||||||||||||
Multi-tenant | ||||||||||||||||||||||||||||||||
Number of properties | 158 | 156 | 161 | 157 | 157 | 149 | ||||||||||||||||||||||||||
Total building square feet | 12,167,287 | 11,984,473 | 12,519,841 | 12,243,069 | 12,243,069 | 11,675,944 | ||||||||||||||||||||||||||
Period end % occupied | 87.6 | % | 87.6 | % | 87.7 | % | 87.9 | % | 88.3 | % | 87.6 | % | ||||||||||||||||||||
Single-tenant | ||||||||||||||||||||||||||||||||
Number of properties | 12 | 12 | 12 | 14 | 14 | 14 | ||||||||||||||||||||||||||
Total building square feet | 810,930 | 810,930 | 810,930 | 1,196,930 | 1,196,930 | 1,252,198 | ||||||||||||||||||||||||||
Period end % occupied | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||||||||
Total same store properties | ||||||||||||||||||||||||||||||||
Number of properties | 170 | 168 | 173 | 171 | 171 | 163 | ||||||||||||||||||||||||||
Total building square feet | 12,978,217 | 12,795,403 | 13,330,771 | 13,439,999 | 13,439,999 | 12,928,142 | ||||||||||||||||||||||||||
Period end % occupied | 88.4 | % | 88.4 | % | 88.4 | % | 89.0 | % | 89.3 | % | 88.8 | % | ||||||||||||||||||||
PROPERTIES NOT IN SAME STORE | ||||||||||||||||||||||||||||||||
4Q 2020 | 3Q 2020 | 2Q 2020 | 1Q 2020 | 4Q 2019 | 3Q 2019 | |||||||||||||||||||||||||||
Acquisitions 2 | ||||||||||||||||||||||||||||||||
Number of properties | 42 | 31 | 26 | 31 | 24 | 30 | ||||||||||||||||||||||||||
Total building square feet | 2,178,267 | 1,667,990 | 1,455,265 | 1,826,029 | 1,487,251 | 1,935,189 | ||||||||||||||||||||||||||
Period end % occupied | 89.2 | % | 91.4 | % | 89.2 | % | 86.9 | % | 86.1 | % | 90.1 | % | ||||||||||||||||||||
Development completions | ||||||||||||||||||||||||||||||||
Number of properties | 1 | 1 | 1 | 1 | — | — | ||||||||||||||||||||||||||
Total building square feet | 151,031 | 151,031 | 151,031 | 151,031 | — | — | ||||||||||||||||||||||||||
Period end % occupied | 60.5 | % | 60.5 | % | 60.5 | % | 20.2 | % | — | % | — | % | ||||||||||||||||||||
% leased | 60.5 | % | 60.5 | % | 60.5 | % | 60.0 | % | — | % | — | % | ||||||||||||||||||||
Reposition 3 | ||||||||||||||||||||||||||||||||
Number of properties | 10 | 11 | 10 | 9 | 9 | 11 | ||||||||||||||||||||||||||
Total building square feet | 799,764 | 859,004 | 523,159 | 429,167 | 429,167 | 567,252 | ||||||||||||||||||||||||||
Period end % occupied | 61.0 | % | 62.1 | % | 46.9 | % | 41.9 | % | 41.9 | % | 36.0 | % | ||||||||||||||||||||
Joint Venture | ||||||||||||||||||||||||||||||||
Number of properties | 4 | — | — | — | — | — | ||||||||||||||||||||||||||
Total building square feet | 325,396 | — | — | — | — | — | ||||||||||||||||||||||||||
Period end % occupied | 72.4 | % | — | % | — | % | — | % | — | % | — | % | ||||||||||||||||||||
% leased | 87.4 | % | — | % | — | % | — | % | — | % | — | % | ||||||||||||||||||||
TOTAL PROPERTIES | ||||||||||||||||||||||||||||||||
4Q 2020 | 3Q 2020 | 2Q 2020 | 1Q 2020 | 4Q 2019 | 3Q 2019 | |||||||||||||||||||||||||||
Number of properties | 227 | 211 | 210 | 212 | 204 | 204 | ||||||||||||||||||||||||||
Total building square feet | 16,432,675 | 15,473,428 | 15,460,226 | 15,846,226 | 15,356,417 | 15,430,583 | ||||||||||||||||||||||||||
Period end % occupied | 86.6 | % | 87.0 | % | 86.8 | % | 86.8 | % | 87.7 | % | 87.0 | % |
1Includes joint venture properties and excludes land held for development, construction in progress, Memphis Redevelopment, corporate property and assets classified as held for sale.
2Acquisition includes properties acquired within the last 8 quarters of the period presented and are excluded from same store.
3Reposition includes properties that meet any of the Company-defined criteria: properties having less than 60% occupancy that is expected to last at least two quarters; properties that experience a loss of occupancy over 30% in a single quarter; or properties with negative net operating income that is expected to last at least two quarters. In addition, the Company reclassified a property to reposition during third quarter of 2020 due to strategic reposition. This reclassification is described in more detail in Trends and Matters Impacting Operating Results of the Company's 2020 Form 10-K.
HEALTHCARE REALTY | 4Q 2020 SUPPLEMENTAL INFORMATION 21 |
Occupancy Reconciliation | ||
SQUARE FEET | ||
SEQUENTIAL | |||||||||||||||||||||||||||||
PORTFOLIO | SAME STORE | ||||||||||||||||||||||||||||
COUNT | OCCUPIED | TOTAL | % | COUNT | OCCUPIED | TOTAL | % | ||||||||||||||||||||||
Beginning September 30, 2020 | 211 | 13,459,634 | 15,473,428 | 87.0 | % | 168 | 11,311,096 | 12,795,403 | 88.4 | % | |||||||||||||||||||
Portfolio activity | |||||||||||||||||||||||||||||
Acquisitions 1 | 16 | 805,362 | 959,247 | 84.0 | % | NA | NA | NA | NA | ||||||||||||||||||||
Re/development completions | — | — | — | — | % | — | — | — | — | % | |||||||||||||||||||
Dispositions 2 | — | — | — | — | % | — | — | — | — | % | |||||||||||||||||||
Same store reclassifications | |||||||||||||||||||||||||||||
Acquisitions | NA | NA | NA | NA | 1 | 123,574 | 123,574 | 100.0 | % | ||||||||||||||||||||
Development completions | NA | NA | NA | NA | — | — | — | — | % | ||||||||||||||||||||
Reposition to same store | NA | NA | NA | NA | 1 | 38,560 | 59,240 | 65.1 | % | ||||||||||||||||||||
Reposition from same store | NA | NA | NA | NA | — | — | — | — | % | ||||||||||||||||||||
227 | 14,264,996 | 16,432,675 | 86.8 | % | 170 | 11,473,230 | 12,978,217 | 88.4 | % | ||||||||||||||||||||
Leasing activity | |||||||||||||||||||||||||||||
New leases/expansions | NA | 120,216 | NA | NA | NA | 103,573 | NA | NA | |||||||||||||||||||||
Move-outs/contractions | NA | (161,022) | NA | NA | NA | (109,547) | NA | NA | |||||||||||||||||||||
Net absorption | NA | (40,806) | NA | NA | NA | (5,974) | NA | NA | |||||||||||||||||||||
Ending December 31, 2020 | 227 | 14,224,190 | 16,432,675 | 86.6 | % | 170 | 11,467,256 | 12,978,217 | 88.4 | % | |||||||||||||||||||
YEAR-OVER-YEAR | |||||||||||||||||||||||||||||
PORTFOLIO | SAME STORE | ||||||||||||||||||||||||||||
COUNT | OCCUPIED | TOTAL | % | COUNT | OCCUPIED | TOTAL | % | ||||||||||||||||||||||
Beginning December 31, 2019 | 204 | 13,462,442 | 15,356,417 | 87.7 | % | 171 | 12,001,733 | 13,439,999 | 89.3 | % | |||||||||||||||||||
Portfolio activity | |||||||||||||||||||||||||||||
Acquisitions 1 | 29 | 1,330,159 | 1,527,834 | 87.1 | % | NA | NA | NA | NA | ||||||||||||||||||||
Re/development completions | 1 | 30,445 | 151,031 | 20.2 | % | — | — | — | — | % | |||||||||||||||||||
Dispositions 2 | (7) | (465,069) | (602,607) | 77.2 | % | (5) | (462,855) | (494,996) | 93.5 | % | |||||||||||||||||||
Same store reclassifications | |||||||||||||||||||||||||||||
Acquisitions | NA | NA | NA | NA | 6 | 395,265 | 417,430 | 94.7 | % | ||||||||||||||||||||
Development completions | NA | NA | NA | NA | — | — | — | — | % | ||||||||||||||||||||
Reposition to same store | NA | NA | NA | NA | 1 | 38,560 | 59,240 | 65.1 | % | ||||||||||||||||||||
Reposition from same store | NA | NA | NA | NA | (3) | (381,259) | (443,456) | 86.0 | % | ||||||||||||||||||||
227 | 14,357,977 | 16,432,675 | 87.4 | % | 170 | 11,591,444 | 12,978,217 | 89.3 | % | ||||||||||||||||||||
Leasing activity | |||||||||||||||||||||||||||||
New leases/expansions | NA | 538,514 | NA | NA | NA | 370,673 | NA | NA | |||||||||||||||||||||
Move-outs/contractions | NA | (672,301) | NA | NA | NA | (494,861) | NA | NA | |||||||||||||||||||||
Net absorption | NA | (133,787) | NA | NA | NA | (124,188) | NA | NA | |||||||||||||||||||||
Ending December 31, 2020 | 227 | 14,224,190 | 16,432,675 | 86.6 | % | 170 | 11,467,256 | 12,978,217 | 88.4 | % |
1Includes joint venture properties.
2Includes properties reclassified as held for sale.
HEALTHCARE REALTY | 4Q 2020 SUPPLEMENTAL INFORMATION 22 |
Same Store Leasing Statistics 1 | ||
4Q 2020 | 3Q 2020 | 2Q 2020 | 1Q 2020 | 4Q 2019 | 3Q 2019 | 2Q 2019 | 1Q 2019 | ||||||||||||||||||||||||||||||||||||||||
Average in-place contractual increases | |||||||||||||||||||||||||||||||||||||||||||||||
Multi-tenant | 2.91 | % | 2.90 | % | 2.89 | % | 2.89 | % | 2.90 | % | 2.93 | % | 2.91 | % | 2.91 | % | |||||||||||||||||||||||||||||||
Single-tenant | 2.27 | % | 2.27 | % | 2.13 | % | 2.10 | % | 2.10 | % | 2.12 | % | 2.43 | % | 2.46 | % | |||||||||||||||||||||||||||||||
2.86 | % | 2.85 | % | 2.83 | % | 2.79 | % | 2.80 | % | 2.82 | % | 2.84 | % | 2.85 | % | ||||||||||||||||||||||||||||||||
Multi-tenant renewals | |||||||||||||||||||||||||||||||||||||||||||||||
Cash leasing spreads | 2.8 | % | 4.5 | % | 4.5 | % | 4.4 | % | 4.2 | % | 3.3 | % | 5.0 | % | 3.3 | % | |||||||||||||||||||||||||||||||
Tenant retention rate | 84.2 | % | 85.1 | % | 84.6 | % | 84.0 | % | 86.6 | % | 90.2 | % | 87.4 | % | 85.5 | % |
AVERAGE IN-PLACE CONTRACTUAL INCREASES 2 | ||||||||||||||||||||||||||
MULTI-TENANT | SINGLE-TENANT | TOTAL | ||||||||||||||||||||||||
% INCREASE | % OF BASE RENT | % INCREASE | % OF BASE RENT | % INCREASE | % OF BASE RENT | |||||||||||||||||||||
Annual increase | ||||||||||||||||||||||||||
CPI | 2.22 | % | 2.33 | % | 1.30 | % | 12.07 | % | 1.95 | % | 3.04 | % | ||||||||||||||
Fixed | 2.99 | % | 94.57 | % | 2.65 | % | 38.54 | % | 2.98 | % | 90.50 | % | ||||||||||||||
Non-annual increase (annualized) | ||||||||||||||||||||||||||
CPI | 1.16 | % | 0.34 | % | 0.50 | % | 4.78 | % | 0.81 | % | 0.66 | % | ||||||||||||||
Fixed | 1.43 | % | 1.80 | % | 2.40 | % | 44.61 | % | 2.07 | % | 4.91 | % | ||||||||||||||
No increase | ||||||||||||||||||||||||||
Term > 1 year | — | % | 0.96 | % | — | % | — | % | — | % | 0.89 | % | ||||||||||||||
Total 2 | 2.91 | % | 100.00 | % | 2.27 | % | 100.00 | % | 2.86 | % | 100.00 | % |
TYPE AND OWNERSHIP STRUCTURE (% OF SQUARE FEET) | ||||||||||||||
MULTI-TENANT | SINGLE-TENANT | TOTAL | ||||||||||||
Tenant type | ||||||||||||||
Hospital | 51.2 | % | 83.0 | % | 53.5 | % | ||||||||
Physician and other | 48.8 | % | 17.0 | % | 46.5 | % | ||||||||
Lease structure | ||||||||||||||
Gross | 10.8 | % | — | % | 10.1 | % | ||||||||
Modified gross | 29.6 | % | — | % | 27.5 | % | ||||||||
Net | 59.6 | % | — | % | 55.3 | % | ||||||||
Absolute net 3 | — | % | 100.0 | % | 7.1 | % | ||||||||
Ownership type | ||||||||||||||
Ground lease | 62.3 | % | 15.6 | % | 59.4 | % | ||||||||
Fee simple | 37.7 | % | 84.4 | % | 40.6 | % |
1Excludes recently acquired or disposed properties, construction in progress, Memphis Redevelopment, land held for development, corporate property, reposition properties and assets classified as held for sale.
2Excludes leases with terms of one year or less.
3Tenant is typically responsible for operating expenses and capital obligations.
HEALTHCARE REALTY | 4Q 2020 SUPPLEMENTAL INFORMATION 23 |
Same Store Performance 1 | ||
DOLLARS IN THOUSANDS, EXCEPT PER SQUARE FOOT DATA | ||
2020 | 4Q 2020 | 3Q 2020 | 2Q 2020 | 1Q 2020 | 2019 | 4Q 2019 | 3Q 2019 | 2Q 2019 | 1Q 2019 | ||||||||||||||||||||||||||||||||
Multi-tenant | |||||||||||||||||||||||||||||||||||||||||
Revenues | $386,401 | $96,781 | $97,684 | $94,915 | $97,021 | $380,674 | $95,944 | $96,025 | $94,931 | $93,774 | |||||||||||||||||||||||||||||||
Expenses | 154,008 | 38,149 | 39,598 | 37,064 | 39,197 | 152,825 | 38,243 | 39,388 | 37,852 | 37,342 | |||||||||||||||||||||||||||||||
Cash NOI | $232,393 | $58,632 | $58,086 | $57,851 | $57,824 | $227,849 | $57,701 | $56,637 | $57,079 | $56,432 | |||||||||||||||||||||||||||||||
Revenue per occ SF 2 | $36.10 | $36.32 | $36.60 | $35.44 | $36.08 | $35.35 | $35.64 | $35.66 | $35.31 | $34.86 | |||||||||||||||||||||||||||||||
Margin | 60.1 | % | 60.6 | % | 59.5 | % | 61.0 | % | 59.6 | % | 59.9 | % | 60.1 | % | 59.0 | % | 60.1 | % | 60.2 | % | |||||||||||||||||||||
Average occupancy | 88.0 | % | 87.6 | % | 87.8 | % | 88.0 | % | 88.4 | % | 88.5 | % | 88.5 | % | 88.5 | % | 88.4 | % | 88.4 | % | |||||||||||||||||||||
Number of properties | 158 | 158 | 158 | 158 | 158 | 158 | 158 | 158 | 158 | 158 | |||||||||||||||||||||||||||||||
Single-tenant | |||||||||||||||||||||||||||||||||||||||||
Revenues | $26,240 | $6,821 | $6,662 | $6,224 | $6,533 | $25,706 | $6,495 | $6,503 | $6,491 | $6,217 | |||||||||||||||||||||||||||||||
Expenses | 2,248 | 582 | 629 | 425 | 612 | 2,234 | 601 | 633 | 604 | 396 | |||||||||||||||||||||||||||||||
Cash NOI | $23,992 | $6,239 | $6,033 | $5,799 | $5,921 | $23,472 | $5,894 | $5,870 | $5,887 | $5,821 | |||||||||||||||||||||||||||||||
Revenue per occ SF 2 | $32.36 | $33.64 | $32.86 | $30.70 | $32.22 | $31.70 | $32.03 | $32.07 | $32.01 | $30.66 | |||||||||||||||||||||||||||||||
Average occupancy | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||||||||
Number of properties | 12 | 12 | 12 | 12 | 12 | 12 | 12 | 12 | 12 | 12 | |||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||
Revenues | $412,641 | $103,602 | $104,346 | $101,139 | $103,554 | $406,380 | $102,439 | $102,528 | $101,422 | $99,991 | |||||||||||||||||||||||||||||||
Expenses | 156,256 | 38,731 | 40,227 | 37,489 | 39,809 | 155,059 | 38,844 | 40,021 | 38,456 | 37,738 | |||||||||||||||||||||||||||||||
Cash NOI | $256,385 | $64,871 | $64,119 | $63,650 | $63,745 | $251,321 | $63,595 | $62,507 | $62,966 | $62,253 | |||||||||||||||||||||||||||||||
Revenue per occ SF 2 | $35.84 | $36.13 | $36.33 | $35.11 | $35.81 | $35.10 | $35.38 | $35.41 | $35.08 | $34.57 | |||||||||||||||||||||||||||||||
Margin | 62.1 | % | 62.6 | % | 61.4 | % | 62.9 | % | 61.6 | % | 61.8 | % | 62.1 | % | 61.0 | % | 62.1 | % | 62.3 | % | |||||||||||||||||||||
Average occupancy | 88.7 | % | 88.4 | % | 88.5 | % | 88.8 | % | 89.1 | % | 89.2 | % | 89.2 | % | 89.2 | % | 89.1 | % | 89.2 | % | |||||||||||||||||||||
Number of properties | 170 | 170 | 170 | 170 | 170 | 170 | 170 | 170 | 170 | 170 | |||||||||||||||||||||||||||||||
SAME STORE GROWTH | |||||||||||||||||||||||
YEAR-OVER-YEAR | |||||||||||||||||||||||
2020 | 4Q 2020 | 3Q 2020 | 2Q 2020 | 1Q 2020 | |||||||||||||||||||
Multi-tenant | |||||||||||||||||||||||
Revenue per occ SF 2 | 2.1 | % | 1.9 | % | 2.6 | % | 0.4 | % | 3.5 | % | |||||||||||||
Avg occupancy (bps) | -50 | -90 | -80 | -30 | — | ||||||||||||||||||
Revenues | 1.5 | % | 0.9 | % | 1.7 | % | — | % | 3.5 | % | |||||||||||||
Expenses | 0.8 | % | (0.2 | %) | 0.5 | % | (2.1 | %) | 5.0 | % | |||||||||||||
Cash NOI | 2.0 | % | 1.6 | % | 2.6 | % | 1.4 | % | 2.5 | % | |||||||||||||
Single-tenant | |||||||||||||||||||||||
Cash NOI | 2.2 | % | 5.9 | % | 2.8 | % | (1.5 | %) | 1.7 | % | |||||||||||||
Total | |||||||||||||||||||||||
Revenues | 1.5 | % | 1.1 | % | 1.8 | % | (0.3 | %) | 3.6 | % | |||||||||||||
Cash NOI | 2.0 | % | 2.0 | % | 2.6 | % | 1.1 | % | 2.4 | % |
1Excludes recently acquired or disposed properties, development completions, construction in progress, Memphis Redevelopment, land held for development, corporate property, reposition properties and assets classified as held for sale.
2Revenue per occ SF is calculated by dividing revenue by the average of the occupied SF for the period provided. Quarterly revenue per occ SF is annualized.
HEALTHCARE REALTY | 4Q 2020 SUPPLEMENTAL INFORMATION 24 |
NOI Reconciliations | ||
DOLLARS IN THOUSANDS | ||
BOTTOM UP RECONCILIATION | |||||||||||||||||||||||||||||||||||||||||||||||||||||
4Q 2020 | 3Q 2020 | 2Q 2020 | 1Q 2020 | 4Q 2019 | 3Q 2019 | 2Q 2019 | 1Q 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | ($15,863) | $8,230 | $75,513 | $4,315 | $27,210 | $2,601 | $4,484 | $4,891 | |||||||||||||||||||||||||||||||||||||||||||||
Other income (expense) | 35,284 | 11,969 | (53,959) | 13,927 | (6,218) | 13,981 | 15,354 | 13,564 | |||||||||||||||||||||||||||||||||||||||||||||
General and administrative expense | 7,206 | 7,299 | 7,434 | 8,766 | 7,669 | 10,802 | 7,845 | 8,510 | |||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization expense | 48,104 | 47,143 | 47,691 | 47,497 | 46,134 | 45,137 | 43,926 | 42,662 | |||||||||||||||||||||||||||||||||||||||||||||
Other expenses 1 | 2,919 | 2,364 | 2,185 | 3,365 | 2,200 | 2,079 | 1,965 | 1,768 | |||||||||||||||||||||||||||||||||||||||||||||
Straight-line rent expense | 369 | 373 | 374 | 375 | 378 | 383 | 387 | 391 | |||||||||||||||||||||||||||||||||||||||||||||
Straight-line rent revenue | (1,013) | (915) | (764) | (1,043) | (1,167) | (770) | (395) | (668) | |||||||||||||||||||||||||||||||||||||||||||||
Other revenue 2 | (2,145) | (1,609) | (1,660) | (2,004) | (1,430) | (1,726) | (1,447) | (1,468) | |||||||||||||||||||||||||||||||||||||||||||||
Joint venture property cash NOI | 135 | 19 | 1 | 78 | 86 | 75 | 95 | 78 | |||||||||||||||||||||||||||||||||||||||||||||
Cash NOI | $74,996 | $74,873 | $76,815 | $75,276 | $74,862 | $72,562 | $72,214 | $69,728 | |||||||||||||||||||||||||||||||||||||||||||||
Acquisitions/development completions | (9,046) | (8,024) | (6,918) | (5,619) | (4,564) | (3,009) | (1,853) | (64) | |||||||||||||||||||||||||||||||||||||||||||||
Dispositions/other | 84 | (1,528) | (4,617) | (4,402) | (5,128) | (5,461) | (5,512) | (5,653) | |||||||||||||||||||||||||||||||||||||||||||||
Joint venture property cash NOI | (135) | (19) | (1) | (78) | (86) | (75) | (95) | (78) | |||||||||||||||||||||||||||||||||||||||||||||
Same store cash NOI and reposition | 65,899 | 65,302 | 65,279 | 65,177 | 65,084 | 64,017 | 64,754 | 63,933 | |||||||||||||||||||||||||||||||||||||||||||||
Reposition | (1,028) | (1,183) | (1,629) | (1,432) | (1,489) | (1,510) | (1,788) | (1,680) | |||||||||||||||||||||||||||||||||||||||||||||
Same store cash NOI | $64,871 | $64,119 | $63,650 | $63,745 | $63,595 | $62,507 | $62,966 | $62,253 | |||||||||||||||||||||||||||||||||||||||||||||
TOP DOWN RECONCILIATION | |||||||||||||||||||||||||||||||||||||||||||||||||||||
4Q 2020 | 3Q 2020 | 2Q 2020 | 1Q 2020 | 4Q 2019 | 3Q 2019 | 2Q 2019 | 1Q 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
Property operating before rent concessions | $117,215 | $115,616 | $111,676 | $112,022 | $108,029 | $106,319 | $103,245 | $99,607 | |||||||||||||||||||||||||||||||||||||||||||||
Rent concessions | (660) | (695) | (600) | (874) | (493) | (514) | (427) | (625) | |||||||||||||||||||||||||||||||||||||||||||||
Property operating | 116,555 | 114,921 | 111,076 | 111,148 | 107,536 | 105,805 | 102,818 | 98,982 | |||||||||||||||||||||||||||||||||||||||||||||
Single-tenant net lease | 6,309 | 7,548 | 10,518 | 10,453 | 10,735 | 11,165 | 11,138 | 11,046 | |||||||||||||||||||||||||||||||||||||||||||||
Straight-line rent revenue | 1,013 | 915 | 764 | 1,043 | 1,167 | 770 | 395 | 668 | |||||||||||||||||||||||||||||||||||||||||||||
Rental income | 123,877 | 123,384 | 122,358 | 122,644 | 119,438 | 117,740 | 114,351 | 110,696 | |||||||||||||||||||||||||||||||||||||||||||||
Property lease guaranty income | — | — | — | — | — | — | — | 128 | |||||||||||||||||||||||||||||||||||||||||||||
Parking income | 1,678 | 1,764 | 1,227 | 2,051 | 1,982 | 1,935 | 1,870 | 1,734 | |||||||||||||||||||||||||||||||||||||||||||||
Exclude straight-line rent revenue | (1,013) | (915) | (764) | (1,043) | (1,167) | (770) | (395) | (668) | |||||||||||||||||||||||||||||||||||||||||||||
Exclude other non-cash revenue 3 | (1,820) | (1,505) | (1,555) | (1,892) | (1,326) | (1,601) | (1,350) | (1,369) | |||||||||||||||||||||||||||||||||||||||||||||
Revenue | 122,722 | 122,728 | 121,266 | 121,760 | 118,927 | 117,304 | 114,476 | 110,521 | |||||||||||||||||||||||||||||||||||||||||||||
Property operating expense | (50,210) | (50,171) | (46,580) | (49,552) | (46,214) | (46,777) | (44,286) | (42,725) | |||||||||||||||||||||||||||||||||||||||||||||
Exclude non-cash expenses 4 | 2,349 | 2,297 | 2,128 | 2,990 | 2,063 | 1,960 | 1,929 | 1,854 | |||||||||||||||||||||||||||||||||||||||||||||
Joint venture property cash NOI | 135 | 19 | 1 | 78 | 86 | 75 | 95 | 78 | |||||||||||||||||||||||||||||||||||||||||||||
Cash NOI | $74,996 | $74,873 | $76,815 | $75,276 | $74,862 | $72,562 | $72,214 | $69,728 | |||||||||||||||||||||||||||||||||||||||||||||
Acquisitions/development completions | (9,046) | (8,024) | (6,918) | (5,619) | (4,564) | (3,009) | (1,853) | (64) | |||||||||||||||||||||||||||||||||||||||||||||
Dispositions/other | 84 | (1,528) | (4,617) | (4,402) | (5,128) | (5,461) | (5,512) | (5,653) | |||||||||||||||||||||||||||||||||||||||||||||
Joint venture property cash NOI | (135) | (19) | (1) | (78) | (86) | (75) | (95) | (78) | |||||||||||||||||||||||||||||||||||||||||||||
Same store cash NOI and reposition | 65,899 | 65,302 | 65,279 | 65,177 | 65,084 | 64,017 | 64,754 | 63,933 | |||||||||||||||||||||||||||||||||||||||||||||
Reposition | (1,028) | (1,183) | (1,629) | (1,432) | (1,489) | (1,510) | (1,788) | (1,680) | |||||||||||||||||||||||||||||||||||||||||||||
Same store cash NOI | $64,871 | $64,119 | $63,650 | $63,745 | $63,595 | $62,507 | $62,966 | $62,253 |
1Includes acquisition and pursuit costs, bad debt, above and below market ground lease intangible amortization, and leasing commission amortization.
2Includes management fee income, interest, above and below market lease intangible amortization, lease inducement amortization, lease termination fees and tenant improvement overage amortization.
3Includes above and below market lease intangibles, interest income related to sales-type leases, lease inducements, lease termination fees and TI amortization.
4Includes above and below market ground lease intangible amortization, leasing commission amortization, and ground lease straight-line rent.
HEALTHCARE REALTY | 4Q 2020 SUPPLEMENTAL INFORMATION 25 |
NOI Reconciliations | ||
DOLLARS IN THOUSANDS | ||
RECONCILIATION OF QTR AND TTM ENDED 12/31/2020 - CASH NOI | |||||||||||||||||||||||
Q4 2020 | Q4 2019 | % CHANGE | 2020 | 2019 | % CHANGE | ||||||||||||||||||
Same store cash NOI | $64,871 | $63,595 | 2.0 | % | $256,385 | $251,321 | 2.0 | % | |||||||||||||||
Reposition | 1,028 | 1,489 | (31.0 | %) | 5,272 | 6,467 | (18.5 | %) | |||||||||||||||
$65,899 | $65,084 | 1.3 | % | $261,657 | $257,788 | 1.5 | % | ||||||||||||||||
Acquisitions/development completions | 9,046 | 4,564 | 98.3 | % | 29,607 | 9,490 | 212.1 | % | |||||||||||||||
Dispositions/other | (84) | 5,128 | (101.6 | %) | 10,463 | 21,754 | (51.9 | %) | |||||||||||||||
Joint venture property cash NOI | 135 | 86 | 57.1 | % | 233 | 334 | (30.1 | %) | |||||||||||||||
Cash NOI | $74,996 | $74,862 | 0.2 | % | $301,960 | $289,366 | 4.4 | % | |||||||||||||||
RECONCILIATION OF NOI TO FFO AND NORMALIZED FFO | |||||||||||||||||||||||||||||||||||
4Q 2020 | 3Q 2020 | 2Q 2020 | 1Q 2020 | 4Q 2019 | 3Q 2019 | 2Q 2019 | 1Q 2019 | ||||||||||||||||||||||||||||
Cash NOI | $74,996 | $74,873 | $76,815 | $75,276 | $74,862 | $72,562 | $72,214 | $69,728 | |||||||||||||||||||||||||||
General and administrative expense | (7,206) | (7,299) | (7,434) | (8,766) | (7,669) | (10,802) | (7,845) | (8,510) | |||||||||||||||||||||||||||
Straight-line rent | 1,013 | 915 | 764 | 1,043 | 1,167 | 770 | 395 | 668 | |||||||||||||||||||||||||||
Interest and other income (expense), net | 140 | 74 | 250 | 93 | 7 | 13 | (750) | 19 | |||||||||||||||||||||||||||
Management fees and other income | 325 | 104 | 105 | 112 | 103 | 124 | 96 | 99 | |||||||||||||||||||||||||||
Other non-cash revenue 1 | 1,820 | 1,505 | 1,555 | 1,892 | 1,326 | 1,601 | 1,350 | 1,369 | |||||||||||||||||||||||||||
Other non-cash expenses 2 | (2,349) | (2,297) | (2,128) | (2,990) | (2,063) | (1,960) | (1,929) | (1,854) | |||||||||||||||||||||||||||
Unconsolidated JV adjustments | (73) | (5) | (37) | (9) | (8) | (8) | (8) | (8) | |||||||||||||||||||||||||||
Debt Covenant EBITDA | $68,666 | $67,870 | $69,890 | $66,651 | $67,725 | $62,300 | $63,523 | $61,511 | |||||||||||||||||||||||||||
Interest expense | (13,618) | (14,154) | (14,442) | (13,960) | (13,816) | (14,181) | (13,850) | (13,588) | |||||||||||||||||||||||||||
Loss on extinguishment of debt | (21,503) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Acquisition and pursuit costs | (939) | (440) | (431) | (750) | (515) | (501) | (422) | (305) | |||||||||||||||||||||||||||
Leasing commission amortization 3 | 2,033 | 1,971 | 1,795 | 1,893 | 1,667 | 1,547 | 1,505 | 1,404 | |||||||||||||||||||||||||||
Non-real estate depreciation and amortization | (886) | (899) | (909) | (859) | (838) | (838) | (829) | (763) | |||||||||||||||||||||||||||
Unconsolidated JV adjustments | (8) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
FFO | $33,745 | $54,348 | $55,903 | $52,975 | $54,223 | $48,327 | $49,927 | $48,259 | |||||||||||||||||||||||||||
Acquisition and pursuit costs | 939 | 440 | 431 | 750 | 515 | 501 | 422 | 305 | |||||||||||||||||||||||||||
Lease intangible amortization | (4) | (35) | (16) | 745 | 4 | 5 | 54 | 84 | |||||||||||||||||||||||||||
Accelerated amortization of restricted stock awards | — | — | — | — | — | 2,854 | — | — | |||||||||||||||||||||||||||
Debt financing costs | 21,920 | — | — | — | — | — | 760 | — | |||||||||||||||||||||||||||
Unconsolidated JV normalizing items | 16 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Normalized FFO | $56,616 | $54,753 | $56,318 | $54,470 | $54,742 | $51,687 | $51,163 | $48,648 |
1Includes above and below market lease intangibles, interest income related to sales-type leases, lease inducements, lease termination fees and TI amortization.
2Includes above and below market ground lease intangible amortization, leasing commission amortization, and ground lease straight-line rent.
3Leasing commission amortization is included in the real estate depreciation and amortization add-back for FFO.
HEALTHCARE REALTY | 4Q 2020 SUPPLEMENTAL INFORMATION 26 |
EBITDA Reconciliations | ||
DOLLARS IN THOUSANDS | ||
RECONCILIATION OF EBITDA | ||||||||||||||||||||
TTM | 4Q 2020 | 3Q 2020 | 2Q 2020 | 1Q 2020 | ||||||||||||||||
Net income (loss) | $72,195 | ($15,863) | $8,230 | $75,513 | $4,315 | |||||||||||||||
Interest expense | 56,174 | 13,618 | 14,154 | 14,442 | 13,960 | |||||||||||||||
Depreciation and amortization | 190,435 | 48,104 | 47,143 | 47,691 | 47,497 | |||||||||||||||
Unconsolidated JV depreciation and amortization | 563 | 323 | 80 | 80 | 80 | |||||||||||||||
EBITDA | $319,367 | $46,182 | $69,607 | $137,726 | $65,852 | |||||||||||||||
Other amortization 1 | 7,692 | 2,033 | 1,971 | 1,795 | 1,893 | |||||||||||||||
(Gain) loss on sales of real estate properties | (70,361) | 34 | (2,177) | (68,267) | 49 | |||||||||||||||
EBITDAre 2 | $256,698 | $48,249 | $69,401 | $71,254 | $67,794 | |||||||||||||||
EBITDA | $319,367 | $46,182 | $69,607 | $137,726 | $65,852 | |||||||||||||||
Acquisition and pursuit costs | 2,560 | 939 | 440 | 431 | 750 | |||||||||||||||
(Gain) loss on sales of real estate properties | (70,361) | 34 | (2,177) | (68,267) | 49 | |||||||||||||||
Loss on extinguishment of debt | 21,503 | 21,503 | — | — | — | |||||||||||||||
Unconsolidated JV adjustments | 8 | 8 | — | — | — | |||||||||||||||
Debt Covenant EBITDA | $273,077 | $68,666 | $67,870 | $69,890 | $66,651 | |||||||||||||||
Other amortization 1 | 7,692 | 2,033 | 1,971 | 1,795 | 1,893 | |||||||||||||||
Lease intangible amortization | 690 | (4) | (35) | (16) | 745 | |||||||||||||||
Timing impact 3 | 3,318 | 3,468 | (887) | — | 737 | |||||||||||||||
Stock based compensation | 9,920 | 2,472 | 2,445 | 2,405 | 2,598 | |||||||||||||||
Unconsolidated JV adjustments | 28 | 4 | 8 | 8 | 8 | |||||||||||||||
Adjusted EBITDA | $294,725 | $76,639 | $71,372 | $74,082 | $72,632 |
1Includes leasing commission amortization.
2Earnings before interest, taxes, depreciation and amortization for real estate ("EBITDAre") is an operating performance measure adopted by NAREIT. NAREIT defines EBITDAre equal to “net income (computed in accordance with GAAP) plus interest expense, income tax expense, depreciation and amortization, impairments and minus gains on the disposition of depreciated property.”
3Adjusted to reflect quarterly EBITDA from properties acquired or disposed in the quarter.
HEALTHCARE REALTY | 4Q 2020 SUPPLEMENTAL INFORMATION 27 |
Components of Net Asset Value | ||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | ||
CASH NOI BY PROPERTY TYPE | ||||||||||||||||||||||||||
4Q 2020 | ||||||||||||||||||||||||||
ASSET TYPE | SAME STORE 1 | ACQ./DEV. COMPLETIONS 2 | JOINT VENTURE | REPOSITION 3 | TIMING ADJUSTMENTS 4 | ADJUSTED CASH NOI | ANNUALIZED ADJUSTED NOI | |||||||||||||||||||
MOB/outpatient | $60,576 | $9,046 | $135 | $1,027 | $3,650 | $74,434 | $297,736 | |||||||||||||||||||
Inpatient/Surgical | 3,177 | — | — | — | — | 3,177 | 12,708 | |||||||||||||||||||
Office | 1,118 | — | — | — | — | 1,118 | 4,472 | |||||||||||||||||||
Total Cash NOI | $64,871 | $9,046 | $135 | $1,027 | $3,650 | $78,729 | $314,916 |
DEVELOPMENT PROPERTIES | TOTAL SHARES OUTSTANDING | ||||||||||||||||
Land held for development | $27,226 | As of February 5, 2021 8 | 139,746,677 | ||||||||||||||
Memphis Redevelopment | 21,650 | ||||||||||||||||
Construction in progress | — | ||||||||||||||||
$48,876 | |||||||||||||||||
OTHER ASSETS | |||||||||||||||||
Assets held for sale 5 | $23,000 | ||||||||||||||||
Reposition properties (net book value) 3 | 11,782 | ||||||||||||||||
Cash and other assets 6 | 123,475 | ||||||||||||||||
$158,257 | |||||||||||||||||
DEBT | IMPLIED CAP RATE | ||||||||||||||||
Unsecured credit facility | $— | STOCK PRICE | IMPLIED CAP RATE | ||||||||||||||
Unsecured term loan due 2024 | 200,000 | As of 2/5/21 | $30.80 | 5.40 | % | ||||||||||||
Unsecured term loan due 2026 | 150,000 | ||||||||||||||||
Senior notes | 1,150,000 | ||||||||||||||||
Mortgage notes payable | 117,221 | 4Q 2020 high | $32.26 | 5.21 | % | ||||||||||||
Remaining re/development funding | 29,596 | 4Q 2020 low | $27.69 | 5.83 | % | ||||||||||||
Other liabilities 7 | 91,837 | ||||||||||||||||
$1,738,654 |
1See Same Store Performance schedule on page 24 for details on same store NOI.
2Adjusted to reflect quarterly NOI from properties acquired or stabilized developments completed during the full eight quarter period that are not included in same store NOI.
3Reposition properties includes 10 properties which comprise 799,764 square feet. The NOI table above includes 9 of these properties comprising 705,772 square feet that generated positive NOI. The remaining property comprising 93,992 square feet generated negative NOI and are reflected at a net book value of $11.8 million above.
4Timing adjustments include current quarter acquisitions of $3.2 million as well as development completion adjustments of $0.5 million to reflect full quarterly stabilized NOI from a recently completed development.
5Assets held for sale includes four real estate properties that are excluded from same store NOI and reflect the contractual purchase price.
6Includes cash of $15.3 million, prepaid assets of $59.4 million, accounts receivable of $11.3 million, and prepaid ground leases of $24.5 million. In addition, includes the Company's occupied portion of its corporate headquarters of $13.0 million.
7Includes only liabilities that are expected to reduce future cash or NOI and that are currently producing non-cash benefits to NOI. Included are accounts payable and accrued liabilities of $81.7 million, security deposits of $9.9 million, and deferred operating expense reimbursements of $0.2 million.
8Total shares outstanding do not reflect the shares associated with forward equity contracts. As of February 5, 2021, the Company had 1.8 million shares to be settled in the future under forward equity contracts.
HEALTHCARE REALTY | 4Q 2020 SUPPLEMENTAL INFORMATION 28 |
Components of Expected FFO | ||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | ||
SAME STORE EXPECTATIONS | |||||||||||||||||||||||
2020 | ACTUAL | EXPECTED 2021 | |||||||||||||||||||||
LOW | HIGH | Q4 2020 | LOW | HIGH | |||||||||||||||||||
Average Occupancy | |||||||||||||||||||||||
Multi-tenant | 87.5 | % | 88.5 | % | 88.0 | % | 87.5 | % | 88.5 | % | |||||||||||||
Single-tenant | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||
Revenue per occupied square foot | |||||||||||||||||||||||
Multi-tenant | $35.50 | $36.50 | $36.10 | $36.75 | $37.50 | ||||||||||||||||||
Single-tenant 1 | $31.50 | $32.50 | $32.36 | $33.25 | $34.00 | ||||||||||||||||||
Multi-tenant cash NOI margin | 59.5 | % | 60.5 | % | 60.1 | % | 60.0 | % | 61.0 | % | |||||||||||||
Multi-tenant cash leasing spreads | 3.0 | % | 4.5 | % | 2.8 | % | 3.0 | % | 4.0 | % | |||||||||||||
Multi-tenant lease retention rate | 75.0 | % | 90.0 | % | 84.2 | % | 75.0 | % | 90.0 | % | |||||||||||||
Cash NOI growth | |||||||||||||||||||||||
Multi-tenant | 1.5 | % | 2.5 | % | 2.0 | % | 2.0 | % | 3.0 | % | |||||||||||||
Single-tenant | 1.7 | % | 2.5 | % | 2.2 | % | 3.0 | % | 5.0 | % | |||||||||||||
Total | 1.5 | % | 2.5 | % | 2.0 | % | 2.0 | % | 3.0 | % | |||||||||||||
ANNUAL EXPECTATIONS | |||||||||||||||||||||||
LOW | HIGH | 2020 | LOW | HIGH | |||||||||||||||||||
Normalized G&A | $31,000 | $32,000 | $30,704 | $33,000 | $36,000 | ||||||||||||||||||
Straight-line rent, net 2 | 1,500 | 3,000 | 2,215 | 3,000 | 5,000 | ||||||||||||||||||
Funding activity | |||||||||||||||||||||||
Acquisitions | 400,000 | 475,000 | 546,853 | 300,000 | 500,000 | ||||||||||||||||||
Dispositions | (4,987) | (50,000) | (4,987) | (50,000) | (100,000) | ||||||||||||||||||
Mercy disposition | (244,456) | (244,456) | (244,456) | NA | NA | ||||||||||||||||||
Re/development | 20,000 | 30,000 | 26,493 | 20,000 | 40,000 | ||||||||||||||||||
1st generation TI and acq. capex | 18,000 | 23,000 | 20,520 | 20,000 | 30,000 | ||||||||||||||||||
2nd generation TI | 24,000 | 30,000 | 26,209 | 28,000 | 34,000 | ||||||||||||||||||
Leasing commissions paid | 7,000 | 11,000 | 10,369 | 10,000 | 14,000 | ||||||||||||||||||
Capital expenditures | 15,000 | 20,000 | 21,758 | 18,000 | 23,000 | ||||||||||||||||||
Total maintenance capex | 46,000 | 61,000 | 58,336 | 56,000 | 71,000 | ||||||||||||||||||
Cash yield | |||||||||||||||||||||||
Acquisitions | 5.0 | % | 5.8 | % | 5.5 | % | 5.0 | % | 5.8 | % | |||||||||||||
Dispositions | 3.0 | % | 4.0 | % | 3.9 | % | 5.0 | % | 6.0 | % | |||||||||||||
Mercy disposition | 7.5 | % | 7.5 | % | 7.5 | % | NA | NA | |||||||||||||||
Re/development (stabilized) | 6.0 | % | 7.5 | % | NA | 6.0 | % | 7.5 | % | ||||||||||||||
Leverage (debt/cap) | 32.0 | % | 36.0 | % | 33.9 | % | 32.0 | % | 36.0 | % | |||||||||||||
Net debt to adjusted EBITDA | 5.0x | 5.5x | 5.2x | 5.0x | 5.5x |
1Pre-COVID range was adjusted to reflect the impact of the Mercy disposition.
2This guidance range is based on current in-place leases.
HEALTHCARE REALTY | 4Q 2020 SUPPLEMENTAL INFORMATION 29 |